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§ 506(c)

In re Happy Wave LLC

Ruling
Surcharge of secured creditor's claim to cover fees and costs incurred in sale of property not warranted.
Issue(s)
Could debtor obtain a surcharge against secured creditor's claim to cover fees and costs incurred in sale of property?

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Commercial opinion summary, case decided on November 25, 2015 , LexisNexis #1215-083

In re Tollenaar Holsteins

Ruling
Bankruptcy court could surcharge secured creditor's collateral based on express or implied consent.
Issue(s)
Could trustee surcharge the collateral of secured creditors for expenses incurred in the administration of debtor's case?

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Commercial opinion summary, case decided on October 05, 2015 , LexisNexis #1115-011

In re Valley Process Sys.

Ruling
Post-dismissal, bankruptcy court could not surcharge property that was no longer property of the estate.
Issue(s)
Did dismissal of an underlying bankruptcy case divest the bankruptcy court of residual jurisdiction to entertain motions for surcharge of property that had been property of the estate?

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Commercial opinion summary, case decided on July 23, 2014 , LexisNexis #0814-085

In re Ware

Ruling
Trustee's motion to surcharge secured creditor for attorneys' fees and expenses denied.
Issue(s)
Whether to grant chapter 7 trustee's motion to surcharge a secured creditor pursuant to 11 U.S.C.S. § 506(c) for attorney's fees and expenses.

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Consumer opinion summary, case decided on June 03, 2014 , LexisNexis #0814-006

Weinman v. City of Pueblo (In re Adam Aircraft Industries Inc.)

Ruling
Bankruptcy court did not err in reducing trustee's §506(c)(3) surcharge.
Issue(s)
Whether the bankruptcy court properly assessed the value of the debtor's collateral securing a loan and used the proper method of recalculating a § 506(c) surcharge?

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Commercial opinion summary, case decided on March 28, 2014 , LexisNexis #0714-045

In re Purdy

Ruling
Abandonment and turnover of cattle and milk proceeds granted pursuant to bank's priority lien.
Issue(s)
Was bank entitled to turnover of debtor's cows where other creditors held liens in cattle and milk proceeds.

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Consumer opinion summary, case decided on September 12, 2013 , LexisNexis #1013-008

In re A.B.A. Fire Equip. Inc.

Ruling
Debtors' continued postpetition operation of business to draw higher sale price did not justify collateral surcharge.
Procedural posture

Chapter 11 debtors moved for an order, pursuant to 11 U.S.C.S. § 506(c), imposing a surcharge on the collateral of secured creditor bank for the amount of $408,186.98, asserting that the sale of substantially all of the estates' assets resulted in a higher sale price, which benefitted the creditor.

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Commercial opinion summary, case decided on June 29, 2012 , LexisNexis #0912-119

In re Strategic Labor Inc.

Ruling
Debtor allowed recovery of cost of preserving and selling property subject to IRS lien but ordered to disgorge unauthorized payments from proceeds.
Procedural posture

The IRS, as a creditor, filed a motion for adequate protection, accounting, disgorgement, and payment of a prepetition tax claim. The chapter 11 debtor, as a debtor-in-possession, sought the recovery of reasonable and necessary costs and expenses of preserving and disposing of property under 11 U.S.C.S. § 506(c).

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Commercial opinion summary, case decided on March 05, 2012 , LexisNexis #0312-120

In re Harbour East Dev. Ltd.

Ruling
Single asset real estate debtor's motion for recovery of maintenance and preservation expenses for condominium units denied.
Procedural posture

A chapter 11 debtor filed a motion for an order authorizing the use of cash collateral under 11 U.S.C.S. § 363(c)(2) and authorizing the recovery of maintenance and preservation expenses from property securing allowed claims pursuant to 11 U.S.C.S. § 506(c). It filed a supplemental motion for an order authorizing the use of cash collateral to obtain a supersedeas bond. A creditor that was the first-priority mortgage holder objected.

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Commercial opinion summary, case decided on December 05, 2011 , LexisNexis #0112-082

In re Spa at Sunset Isles Condominium Assn

Ruling
Debtor could surcharge mortgagee for pro rata share of assessments used to maintain condominium.
Procedural posture

Condominium units were in protracted foreclosure proceedings initiated by a mortgagee, during which assessments to maintain the common elements of the condominium were not remitted to bankruptcy debtor condominium association. The debtor moved to surcharge the mortgagee for a pro rata share of the assessments pursuant to 11 U.S.C.S. § 506(c) based on the inclusion of the common elements in the mortgagee's collateral.

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Commercial opinion summary, case decided on July 13, 2011 , LexisNexis #0911-117