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§ 726

In re Winter Mfg.

Ruling
Late filed proof of claim allowed due to lack of service of notice of case or bar date.
Procedural posture

In a debtor's chapter 7 case, movant creditors filed a motion to enlarge the time to file a proof of claim.

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Commercial opinion summary, case decided on March 02, 2010 , LexisNexis #0510-126

In re Carpenter

Ruling
Untimely filed judgment claim by creditor city based on income tax debt was not entitled to priority.
Procedural posture

The chapter 7 debtors and a creditor (a city) filed a joint objection to a chapter 7 trustee's final report. The trustee filed an objection to the city's proof of claim. The debtors and the city alleged that the city's judgment debt constituted a withholding tax pursuant to 11 U.S.C.S. § 507(a)(8)(C) rather than an income tax under § 507(a)(8)(A).

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Consumer opinion summary, case decided on December 28, 2009 , LexisNexis #0110-104

American Express Bank v. Ashkenaizer (In re Plourde)

Ruling
Credit card creditors' claims allowed subject to subordination to extent not compensation for actual pecuniary loss.
Procedural posture

Appellant creditor sought review of an order from the United States Bankruptcy Court for the District of New Hampshire, which disallowed its general unsecured claim for $ 42,452 in credit card debt. The chapter 7 trustee appealed the bankruptcy court's order allowing another credit card creditor's general unsecured claim in the amount of $ 6,309. The trustee also appealed the court's denial of his request for an award of attorney's fees.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on October 19, 2009 , LexisNexis #1109-070

In re Owens

Ruling
Objection to final distribution of proceeds of sale of entireties property overruled.
Procedural posture

The debtor filed a bankruptcy petition, but his wife did not join in the petition. Pursuant to 11 U.S.C.S. § 726, the chapter 7 trustee submitted a proposed final distribution of proceeds realized from the sale of the couple's residence, which they owned as tenants by the entirety when the debtor commenced his bankruptcy case. The debtor and wife filed an objection.

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Consumer opinion summary, case decided on January 26, 2009 , LexisNexis #0409-033

In re MMH Auto Group LLC

Ruling
Untimely filed claim subordinated to all timely filed claims.
Procedural posture

Movant, the chapter 7 trustee, asked the court to deem untimely a claim filed by the brother of the owner of debtor corporation, which debtor had owned an auto dealership, and to subordinate such claim to all timely-filed claims in certain substantively consolidated cases pursuant to 11 U.S.C.S. § 726(a)(3).

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Commercial opinion summary, case decided on December 05, 2008 , LexisNexis #0309-138

In re Cincom iOutsource Inc.

Ruling
Proof of claim failed after creditor was added to amended schedule was deemed timely.
Procedural posture

Debtor corporation filed a petition under chapter 7 of the Bankruptcy Code, and a trustee was appointed to represent the bankruptcy estate. Movant creditor filed a proof of claim after the deadline established by the court, and moved for an order deeming its proof of claim as timely. The trustee and another creditor opposed the creditor's motion.

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Commercial opinion summary, case decided on November 20, 2008 , LexisNexis #0109-021

In re Shihai

Ruling
Fee application of debtor's pre-conversion counsel treated as interim application pending full administration.
Procedural posture

Counsel for the debtors filed a first and final application for fees and expenses. The United States Trustee and chapter 7 trustee opposed the application.

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Consumer opinion summary, case decided on August 18, 2008 , LexisNexis #0908-009

In re Patterson

Ruling
Debtor's attorney's prepetition retainer was subject to disgorgement.
Procedural posture

After an attorney for a chapter 11 debtor withdrew and the case was converted to a chapter 7 case, the attorney filed an application for compensation, seeking permission to apply a prepetition retainer paid to her in partial satisfaction of her fees, with the balance due to be paid by the debtor if not paid pursuant to 11 U.S.C.S. § 726(b) at the close of the case. Both the chapter 7 trustee and the U.S. Trustee objected.

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Consumer opinion summary, case decided on January 15, 2008 , LexisNexis #0508-017

In re Morande Enters.

Ruling
FICA tax penalty claim subordinated to claims of unsecured creditors,
Procedural posture

A corporate debtor filed a petition under chapter 11, and creditor IRS filed a claim in the amount of $55,005.16, based on penalties relating to the debtor's nonpayment of FICA tax obligations to the U.S. The debtor filed a motion to subordinate the IRS'claim.

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opinion summary, case decided on June 29, 2007 , LexisNexis #0907-066

In re Zukowsky

Ruling
Claims filed after deadline could be paid by trustee after timely filed claims but before any payment to debtors where debtor's inheritance provided sufficient funds.
Procedural posture

Debtors filed a petition under chapter 7, and a trustee was appointed to manage the bankruptcy estate. The debtors filed an objection to the trustee's proposed distribution of assets to creditors, and to the manner in which the trustee calculated his fee.

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opinion summary, case decided on June 28, 2007 , LexisNexis #0807-087