Central District Consumer Bankruptcy Attorney's Association

John:
Not enough facts. Was the lease/rental agreement expired? Is there already a new tenant? If both not, rent accruing can be set off. If so, the other answers apply.
d
Dennis McGoldrick, 350 S. Crenshaw Bl., #A207B, Torrance, Ca 90503 310-328-1001-voice
> On Dec 9, 2014, at 1:49 PM, Giovanni Orantes go@gobklaw.com [cdcbaa] wrote:
>
> And since the Chapter 11 Debtor-In-Possession has all the powers of a trustee under 1107, it would have to be turned over to the Chapter 11 DIP. The State statute was poorly drafted because it says the tenant has priority over creditors and the debtor, but allows it to be turned over to a trustee -- what for? Is it for the trustee to then administer it. If so, it would seem that the DIP can use it like a trustee would -- i.e., to pay himself or his professionals (lol). In other words, use it first before other money to pay administrative claims. All that seems cynical but accurate and it would justify not turning it over until plan confirmation. The tenant then has a claim in a class that seems to have more rights than others, and, therefore, can be separately classified and used to cram down if you can impair it (e.g., not pay it interest).
>
>> On Tue, Dec 9, 2014 at 3:49 AM, Catherine Christiansen christiansenlaw@yahoo.com [cdcbaa] wrote:
>>
>> Hi John:
>>
>> Michael is right, the tenant is a priority creditor who can be a yes vote on a plan.
>>
>> Catherine.
>>
>>
>> Law Office of Catherine Christiansen
>> Certified Specialist, Bankruptcy Law, The State Bar of California Board of Legal Specialization.
>>
>>
>>
>>
>> On Monday, December 8, 2014 5:00 PM, "John Faucher j.d.faucher@sbcglobal.net [cdcbaa]" wrote:
>>
>>
>>
>> Hello Brain Trust:
>> Chapter 11 debtor has a commercial tenant who left just before he filed his petition. Commercial tenant can really use the $1,500 security deposit back. Client segregated the security deposit. Is there any justification for paying it back, or is it just another unsecured debt like a credit card? >> - John D. Faucher
>> 818/889-8080
>
>
>
> --
> 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
>
> *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 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 >
> IRS Circular 230 Disclosure: In order to comply with requirements imposed by the Internal Revenue Service, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.
>

The post was migrated from Yahoo.

And since the Chapter 11 Debtor-In-Possession has all the powers of a
trustee under 1107, it would have to be turned over to the Chapter 11 DIP.
The State statute was poorly drafted because it says the tenant has
priority over creditors and the debtor, but allows it to be turned over to
a trustee -- what for? Is it for the trustee to then administer it. If
so, it would seem that the DIP can use it like a trustee would -- i.e., to
pay himself or his professionals (lol). In other words, use it first
before other money to pay administrative claims. All that seems cynical
but accurate and it would justify not turning it over until plan
confirmation. The tenant then has a claim in a class that seems to have
more rights than others, and, therefore, can be separately classified and
used to cram down if you can impair it (e.g., not pay it interest).
On Tue, Dec 9, 2014 at 3:49 AM, Catherine Christiansen
christiansenlaw@yahoo.com [cdcbaa] wrote:
>
>
> Hi John:
>
> Michael is right, the tenant is a priority creditor who can be a yes vote
> on a plan.
>
> Catherine.
>
>
> Law Office of Catherine Christiansen
> Certified Specialist, Bankruptcy Law, The State Bar of California Board of
> Legal Specialization.
>
>
>
>
> On Monday, December 8, 2014 5:00 PM, "John Faucher
> j.d.faucher@sbcglobal.net [cdcbaa]" wrote:
>
>
>
> Hello Brain Trust:
> Chapter 11 debtor has a commercial tenant who left just before he filed
> his petition. Commercial tenant can really use the $1,500 security deposit
> back. Client segregated the security deposit. Is there any justification
> for paying it back, or is it just another unsecured debt like a credit
> card?
> - John D. Faucher
> 818/889-8080
>
>
>
>
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
*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 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 at (213) 389-4362 or (888) 619-8222.
IRS Circular 230 Disclosure: In order to comply with requirements imposed
by the Internal Revenue Service, we inform you that any U.S. tax advice
contained in this communication (including any attachments) is not intended
to be used, and cannot be used, for the purpose of (i) avoiding penalties
under the Internal Revenue Code or (ii) promoting, marketing, or
recommending to another party any transaction or matter addressed herein.
And since the Chapter 11 Debtor-In-Possession has all the powers of a trustee under 1107, it would have to be turned over to the Chapter 11 DIP. The State statute was poorly drafted because it says the tenant has priority over creditors and the debtor, but allows it to be turned over to a trustee -- what for? Is it for the trustee to then administer it. If so, it would seem that the DIP can use it like a trustee would -- i.e., to pay himself or his professionals (lol). In other words, use it first before other money to pay administrative claims. All that seems cynical but accurate and it would justify not turning it over until plan confirmation. The tenant then has a claim in a class that seems to have more rights than others, and, therefore, can be separately classified and used to cram down if you can impair it (e.g., not pay it interest).On Tue, Dec 9, 2014 at 3:49 AM, Catherine Christiansen christiansenlaw@yahoo.com [cdcbaa] <cdcbaa@yahoogroups.com> wrote:

The post was migrated from Yahoo.

Hi John:
Michael is right, the tenant is a priority creditor who can be a yes vote on a plan.
Catherine.
Law Office of Catherine Christiansen
Certified Specialist, Bankruptcy Law, The State Bar of California Board of Legal Specialization.
On Monday, December 8, 2014 5:00 PM, "John Faucher j.d.faucher@sbcglobal.net [cdcbaa]" wrote:
Hello Brain Trust:Chapter 11 debtor has a commercial tenant who left just before he filed his petition. Commercial tenant can really use the $1,500 security deposit back. Client segregated the security deposit. Is there any justification for paying it back, or is it just another unsecured debt like a credit card? - John D. Faucher818/889-8080
The post was migrated from Yahoo.

Hi John,
Since no one else chimed in... look at civil code section 1950.7 (b) The
payment or deposit of money shall be held by the landlord for the tenant
who is party to the agreement. *The claim of a tenant to the payment or
deposit shall be prior to the claim of any creditor of the landlord*,
except a trustee in bankruptcy.
I don't know, but I believe the "except a trustee in bankruptcy" language
means the debtor would have to turn the funds over to a trustee if one were
to be appointed.
What I can't answer w/o research is whether this priority is sufficient
reason to be able to pay this creditor. I hope that helps to some degree.
Sincerely,
Michael Avanesian
On Mon, Dec 8, 2014 at 5:00 PM, John Faucher j.d.faucher@sbcglobal.net
[cdcbaa] wrote:
>
>
> Hello Brain Trust:
> Chapter 11 debtor has a commercial tenant who left just before he filed
> his petition. Commercial tenant can really use the $1,500 security deposit
> back. Client segregated the security deposit. Is there any justification
> for paying it back, or is it just another unsecured debt like a credit
> card?
> - John D. Faucher
> 818/889-8080
>
>
>
Hi John,Since no one else chimed in... look at civil code section 1950.7 (b) The payment or deposit of money shall be held by the landlord for the tenant who is party to the agreement. The claim of a tenant to the payment or deposit shall be prior to the claim of any creditor of the landlord, except a trustee in bankruptcy.I don't know, but I believe the "except a trustee in bankruptcy" language means the debtor would have to turn the funds over to a trustee if one were to be appointed.What I can't answer w/o research is whether this priority is sufficient reason to be able to pay this creditor. I hope that helps to some degree.Sincerely, Michael AvanesianOn Mon, Dec 8, 2014 at 5:00 PM, John Faucher j.d.faucher@sbcglobal.net [cdcbaa] <cdcbaa@yahoogroups.com> wrote:

The post was migrated from Yahoo.

Hello Brain Trust:
Chapter 11 debtor has a commercial tenant who left just before he filed his petition. Commercial tenant can really use the $1,500 security deposit back. Client segregated the security deposit. Is there any justification for paying it back, or is it just another unsecured debt like a credit card?
- John D. Faucher
818/889-8080

The post was migrated from Yahoo.