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In re Smith

In re Smith

Ruling
Past fraudulent conduct was not grounds for appointment of chapter 11 trustee.
Procedural posture

A bankruptcy administrator (BA) filed a motion for appointment of a chapter 11 trustee on the grounds that the pre-petition fraudulent conduct to which the male debtor pled guilty during the bankruptcy case constitute cause under 11 U.S.C.S. § 1104(a)(1). The debtor opposed the motion, as did a creditor that provided post-petition financing to the debtors.

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Consumer opinion summary, case decided on May 21, 2012 , LexisNexis #0612-058