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Sale by Chapter 7 Trustee After Avoidance under 522(f)
I have never researched the issue but my gut tells me that the Trustee can take what you give him/her. Trustee cant avoid the liens but if Debtor wants to do the Trustee a favor by creating equity then trustee can take advantage.
In borderline equity cases, best for debtor to seek abandonment of property before doing a 522(f) motion.
If the debtor moves years later to reopen the case, the property is already abandoned when case was first closed so Trustee cant seek to administer the property in reopened case (assuming that property was disclosed)
Frank X. Ruggier
Sent from my iPhone
> On Aug 14, 2018, at 5:29 PM, Giovanni Orantes go@gobklaw.com [cdcbaa] wrote:
>
> In one of my cases, a property was valued at about $830,000 on the date of the petition but had consensual and judgment liens adding up to well over $2.9 Million. We filed motions to avoid the judgments under 522(f) and now want the Trustee, who kept the case open presumably to seek turnover of some funds, to abandon the property. The Trustee is saying that with the liens left, the property has equity for a distribution to creditors. Does the new equity inure to the benefit of the estate? It's hard to find a case or law on point, but I suspect I'm missing something obvious since the rule should be that the Trustee cannot do that. For the Trustee to be able to that seems unfathomable because there would be nothing to keep a trustee from seeking to administer an asset after a debtor seeks to reopen it years later and the property has equity at that point. I'd appreciate any thoughts or cases on the issue.
>
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> Giovanni Orantes, Esq.*
> Orantes Law Firm, P.C.
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WE DO NOT ACCEPT SERVICE BY EMAIL UNLESS WE HAVE AGREED TO ACCEPT IT IN WRITING.Giovanni Orantes, Esq.*Orantes Law Firm, P.C.3435 Wilshire Blvd. Suite 2920Los Angeles, CA 90010Tel: (213) 389-4362Fax: (877) 789-5776e-mail: go@gobklaw.comwebsite: www.gobklaw.com*Certified Bankruptcy Specialist, State Bar of California, Board of Legal Specialization*Board Certified - Business Bankruptcy Law - American Board of Certification*Board Certified - Consumer Bankruptcy Law - American Board of CertificationCommercial LitigationEstate PlanningOutside General Counsel
The post was migrated from Yahoo.
In one of my cases, a property was valued at about $830,000 on the date of
the petition but had consensual and judgment liens adding up to well over
$2.9 Million. We filed motions to avoid the judgments under 522(f) and now
want the Trustee, who kept the case open presumably to seek turnover of
some funds, to abandon the property. The Trustee is saying that with the
liens left, the property has equity for a distribution to creditors. Does
the new equity inure to the benefit of the estate? It's hard to find a
case or law on point, but I suspect I'm missing something obvious since the
rule should be that the Trustee cannot do that. For the Trustee to be able
to that seems unfathomable because there would be nothing to keep a trustee
from seeking to administer an asset after a debtor seeks to reopen it years
later and the property has equity at that point. I'd appreciate any
thoughts or cases on the issue.
WE DO NOT ACCEPT SERVICE BY EMAIL UNLESS WE HAVE AGREED TO ACCEPT IT IN
WRITING.
Giovanni Orantes, Esq.*
Orantes Law Firm, P.C.
3435 Wilshire Blvd. Suite 2920
Los Angeles, CA 90010
Tel: (213) 389-4362
Fax: (877) 789-5776
e-mail: go@gobklaw.com
website: www.gobklaw.com
**Certified Bankruptcy Specialist, State Bar of California, Board of Legal
Specialization*
*Board Certified - Business Bankruptcy Law - American Board of Certification
*Board Certified - Consumer Bankruptcy Law - American Board of Certification
Commercial Litigation
Estate Planning
Outside General Counsel
WE ARE A "DEBT RELIEF AGENCY" AS DEFINED BY FEDERAL LAW.
SERVING BAKERSFIELD, LOS ANGELES, ORANGE COUNTY, RIVERSIDE, SAN BERNARDINO
AND SANTA BARBARA AND THE WORLD FOR CHAPTER 11 AND 15 CASES.
Note: The information in this e-mail message is not intended to be legal
advice and should not be relied upon as legal advice unless counsel
expressly contracted in writing to provide such advice. Furthermore, the
information contained in this e-mail message is confidential information
intended only for the use of the individual or entity named. If the reader
of this message is not the intended recipient or an agent responsible for
delivering it to the intended recipient, you are hereby notified that any
dissemination, distribution or copy of this communication is strictly
prohibited. If you have received this communication in error, please
immediately notify us by telephone or e-mail and delete the original e-mail
In one of my cases, a property was valued at about $830,000 on the date of the petition but had consensual and judgment liens adding up to well over $2.9 Million. We filed motions to avoid the judgments under 522(f) and now want the Trustee, who kept the case open presumably to seek turnover of some funds, to abandon the property. The Trustee is saying that with the liens left, the property has equity for a distribution to creditors. Does the new equity inure to the benefit of the estate?sing something obvious since the rule should be that the Trustee cannot do that. For the Trustee to be able to that seems unfathomable because there would be nothing to keep a trustee from seeking to administer an asset after a debtor seeks to reopen it years later and the property has equity at that point. I'd appreciate any thoughts or cases on the issue.--
The post was migrated from Yahoo.