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§ 554(c)

LPP Mortg. Ltd. v. Brinley

Ruling
Trustee properly allowed to revoke technical abandonment of property to preserve unencumbered equity.
Procedural posture

Defendant chapter 7 debtors sought review of the U.S. District Court for the Western District of Kentucky at Louisville's opinion and order affirming a bankruptcy court's order which allowed plaintiff trustee to revoke his 11 U.S.C.S. § 554(c) abandonment of their real property.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on November 24, 2008 , LexisNexis #1208-137

In re Smith

Ruling
Bankruptcy court declined to revoke abandonment of debtor's real property upon reopening of case to administer unlisted lawsuit.
Procedural posture

After the debtor was granted a chapter 7 discharge, the trustee sought to reopen the case to administer an unlisted lawsuit. The debtor amended his property exemptions to exempt part of the unlisted asset. He also moved for authority to sell real property to his fiance for more than the value listed on schedule A. The sale was allowed. The trustee objected to the sale, seeking an order that the net proceeds belonged to the estate.

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Consumer opinion summary, case decided on October 06, 2008 , LexisNexis #1208-018

Olson v. Aegis Mortg. Corp. (In re Bloxxsom)

Ruling
Lot encumbered by mortgage but mistakenly not administered was abandoned upon closure of case.
Procedural posture

Bankruptcy debtors owned two adjacent lots of real property, and plaintiff bankruptcy trustee discovered after the debtors' case was closed that a mortgage intended to provide security based on both lots mistakenly did not include one lot. The trustee reopened the case and brought an adversary proceeding against defendant mortgage creditors to avoid their lien on the omitted lot, and the creditors moved to dismiss the complaint.

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Consumer opinion summary, case decided on May 30, 2008 , LexisNexis #0708-104

Moyer v. ABN AMRO Mortg. Group Inc. (In re Feringa)

Ruling
Trustee's ability to avoid mortgage was not subject to abandonment.
Procedural posture

Plaintiff, the chapter 7 trustee, commenced an adversary proceeding against defendant creditor, seeking to avoid a mortgage the creditor claimed against the debtors'residence, as a preference pursuant to 11 U.S.C. §§ 547 and 550. The creditor asserted the trustee lacked standing due to the running of the limitations period imposed by 11 U.S.C. § 546(a), that the claim had been abandoned when the trustee caused the case to be dismissed.

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Consumer opinion summary, case decided on October 03, 2007 , LexisNexis #1107-012

In re Johnson

Ruling
Post-discharge proceeds of disclosed class action lawsuit technically abandoned by trustee were not subject to turnover.
Procedural posture

Plaintiff chapter 7 trustee moved for an order requiring a sum of money received by defendant debtors on account of their participation in a class action lawsuit, which sum was paid to them subsequent to the closing of their chapter 7 case. Debtors objected to turnover, arguing that the asset had been abandoned as per 11 U.S.C. § 554(c) and that the trustee had no right thereto.

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opinion summary, case decided on January 23, 2007 , LexisNexis #0307-065

Moldo v. Albers (In re Sheridan)

Ruling
Abandonment of debtor's interest in company was revoked upon reopening of case.
Procedural posture

Defendant filed a motion to dismiss claims brought by chapter 7 trustee, which sought declaratory relief, sought to enjoin defendant from taking any actions on behalf of a company of which debtor was the president, alleged a violation of the discharge injunction pursuant to 11 U.S.C. § 524(a)(2), sought an order that defendant turn over debtor's shares in the company, and sought sanctions against defendant.

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opinion summary, case decided on November 09, 2006 , LexisNexis #1206-067

In re Holliday

Ruling
Unscheduled judgment claim against third party was not abandoned upon closing of no asset case.
Procedural posture

After debtor's chapter 7 bankruptcy proceeding was closed on a "no asset" determination, the trustee filed a motion for a redetermination of the estate's assets based on debtor's ownership of judgments against a third party (maker) that arose from a prepetition cause of action. At issue was whether the claim against the maker had been abandoned by operation of law under 11 U.S.C. § 554(c).

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opinion summary, case decided on August 31, 2006 , LexisNexis #1206-031

Graupner v. Town of Brookfield

Ruling
Opening and closing of bankruptcy case did not effect abandonment of debtor's undisclosed labor law cause of action
Procedural posture

Defendants, a town and associated officials, filed a motion for summary judgment in connection with a civil action for money damages brought by plaintiff police officer pursuant to 42 U.S.C. § 1983 for alleged violation of his constitutional rights and various state law claims.

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opinion summary, case decided on August 09, 2006 , LexisNexis #0906-093

In re Locklair

Ruling
Trustee was denied motion to reopen case since trustee technically had abandoned surplus from property sale.
Procedural posture

A trustee filed a motion to reopen the debtors'chapter 7 case to allow for the administration of surplus funds resulting from the sale of their real property by a creditor at public auction.

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opinion summary, case decided on May 18, 2006 , LexisNexis #0706-063

Russell v. Tadlock (In re Tadlock)

Ruling
Debtors were entitled to a surplus that exceeded liens on their foreclosed home, and the trustee was not entitled to reopen the case since the trustee had not moved to except the property from abandonment prior to the close of the case.
Procedural posture

After appellant debtors listed their home with liens exceeding its value, a creditor's motion to proceed with foreclosure was granted, appellee trustee filed a report of no distribution, and the case was closed. When the home sold for more than the remaining liens, the Bankruptcy Court for the District of Wyoming revoked the order of abandonment and declared that the surplus was the property of the estate. The debtors appealed.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on March 10, 2006 , LexisNexis #0306-135