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§ 726(a)

In re Brown

Ruling
Debtor's motion to purchase cause of action from estate in closed case granted over objection of potential defendant.
Procedural posture

After bankruptcy debtors'case was closed, the debtors'former mortgagee filed an eviction action against the debtors and the debtors counterclaimed on the ground that the mortgagee engaged in improper debt collection activities. After the case was reopened, the trustee moved for leave to release the debtors' prepetition cause of action against the mortgagee to the debtors in exchange for a cash payment.

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opinion summary, case decided on September 01, 2006 , LexisNexis #1106-099

In re Hyman Freightways Inc.

Ruling
Court denied trustee's motion seeking refund of professional fees since payments were authorized by Bankruptcy Code and approved by court.
Procedural posture

The chapter 7 trustee, purportedly under 11 U.S.C. § 726(a), filed a motion seeking a refund of professional fees from three groups of professionals who provided services to the debtor during the time the debtor was in chapter 11.

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opinion summary, case decided on May 18, 2006 , LexisNexis #0606-131

In re Williams-Johnson

Ruling
Creditor's amended claim was allowed as a late-filed claim under section 726(a)(2)(C) but only in a reduced amount.
Procedural posture

A creditor filed a proof of claim in a debtor's bankruptcy for amounts allegedly paid by the creditor to lenders secured by two parcels of real property of which the debtor was the co-owner with the creditor. The bankruptcy trustee objected to the claim.

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opinion summary, case decided on January 04, 2006 , LexisNexis #0506-028

Hollingsworth v. Kaler (In re Hollingsworth)

Ruling
Creditor who filed proof of claim eight months late was entitled to payment since debtor did not timely object and sufficient funds remained to make payment.
Procedural posture

Pro se appellant bankruptcy debtor asserted that appellee trustee improperly paid the claims of a creditor which were not timely filed. The debtor appealed the order of the bankruptcy court that approved the trustee's final report which provided for payment of the late claims.

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Court :
Judge or Jurisdiction information not available
opinion summary, case decided on October 03, 2005 , LexisNexis #0106-060