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§ 542

Burkart v. Coleman

Ruling
Bankruptcy appellate panel properly held unauthorized postpetition transfer to bona fide purchaser should not have been avoided.
Procedural posture

Chapter 7 bankruptcy trustee filed an adversary proceeding seeking to recover the sale proceeds of a residence under 11 U.S.C.S. § 542, avoid liens, and quiet title in the bankruptcy estate. The bankruptcy court ruled in favor of the trustee, but on appeal, the Bankruptcy Appellate Panel for the Ninth Circuit reversed and entered judgment in favor of appellee bona fide purchaser and his purchase-money lenders. The trustee appealed.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on September 04, 2008 , LexisNexis #0908-138

Faulkner v. Berg (In re Heritage Org. LLC)

Ruling
Motion to withdraw reference of proceeding granted where settlement of trustee's claims left ony non-core issues.
Procedural posture

Plaintiff chapter 11 trustee filed an adversary proceeding against defendant promisor, alleging breach of contract and seeking turnover of property under 11 U.S.C.S. § 542, the promisor filed a third-party action against third-party defendant, the chapter 11 debtor's principal officer and indirect shareholder. The promisor and principal officer joined in a motion to withdraw reference of the action to the bankruptcy court.

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Commercial opinion summary, case decided on July 23, 2008 , LexisNexis #0808-136

Bohm v. Cantor (In re Cantor)

Ruling
Debtor could claim exemption in residence purchased for debtor by former spouse as part of property settlement.
Procedural posture

Plaintiff, the chapter 7 trustee, brought an adversary action pursuant to 11 U.S.C.S. § 542(a) against defendant debtor and her non-debtor former spouse, seeking an order directing them to turn over their interests in the residence in which the debtor and her children resided. The debtor opposed the turnover, and claimed an exemption, presently valued at $1.00 in the residence.

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Consumer opinion summary, case decided on June 25, 2008 , LexisNexis #0708-121

In re Herrera

Ruling
Attorney required to turn over documents relating to debtor's state court lawsuit.
Procedural posture

The debtors filed for relief under chapter 7 of the Bankruptcy Code. The attorney had represented the debtors in a state court lawsuit and claimed that he was owed over $48,000 in legal services. The debtors sought to hold the attorney in contempt for violation of the automatic stay and sought a turnover of documents. The attorney filed a motion for sanctions.

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Consumer opinion summary, case decided on June 05, 2008 , LexisNexis #0708-049

Spradlin v. Breeding (In re Breeding)

Ruling
Postpetition proceeds of personal injury settlement were property of the estate and portion transferred to debtor's former spouse was subject to turnover order.
Procedural posture

Plaintiff trustee filed an adversary proceeding against defendant ex-wife under 11 U.S.C.S. § 542(a) for turnover to the debtor's bankruptcy estate of the post-petition settlement of a personal injury claim that was transferred from a joint checking account to the ex-wife. The ex-wife filed a third-party complaint against third-party defendant debtor for the amount of the transferred funds.

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Consumer opinion summary, case decided on May 02, 2008 , LexisNexis #0608-079

Mason v. Crosby (In re Mason)

Ruling
Bail bond deposit assigned by debtor to attorney before peitition date was not property of the estate.
Procedural posture

Plaintiff chapter 7 Trustee filed an adversary proceeding against defendants, including an attorney, seeking turnover of estate assets under 11 U.S.C.S. § 542 and § 543. The Trustee sought the proceeds of a bail bond that were paid to the attorney who represented the debtor in a criminal case. The Trustee sought judgment on stipulated facts. The court treated the matter as a motion for judgment on the pleadings under Fed. R. Civ. P. 12(c).

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Consumer opinion summary, case decided on April 30, 2008 , LexisNexis #0608-013

White v. Brown (In re White)

Ruling
Bankruptcy court did not err in ordering turnover of proceeds of sale of debtor's homestead.
Procedural posture

Debtor challenged an order from the Bankruptcy Court for the District of Arizona, which ordered the turnover of the proceeds from the sale of his Arizona homestead under 11 U.S.C.S. § 542(a).

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on April 22, 2008 , LexisNexis #1008-100

In re Osterwalder

Ruling
Motion for turnover granted as to 21 of 22 animal mounts.
Procedural posture

A chapter 7 trustee filed a motion for turnover of 22 animal mounts pursuant to 11 U.S.C.S. § 542.

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Consumer opinion summary, case decided on March 14, 2008 , LexisNexis #0408-115

Moser v. Bank of Texas (In re Chambers)

Ruling
Assets in spendthrift trust not subject to turnover.
Procedural posture

Chapter 7 trustee filed an adversary proceeding against defendants, a chapter 7 debtor, a bank, and a trust beneficiary, seeking an order under 11 U.S.C.S. § 542(a) requiring the bank to turn over assets it held in a trust the debtor's grandfather created. The bank opposed the trustee's action.

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Consumer opinion summary, case decided on February 25, 2008 , LexisNexis #0608-096

Warsco v. Drew (In re Drew)

Ruling
Debtor's interest in trust which debtor was entitled to receive on petition date was subject to turnover.
Procedural posture

Plaintiff bankruptcy trustee brought an adversary proceeding against defendants, the trustees of a trust, including the bankruptcy debtor, seeking turnover under 11 U.S.C.S. § 542(a) of the debtor's interest in the trust as a trust beneficiary. The trustee moved for summary judgment, and the trustees did not respond to the motion.

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Consumer opinion summary, case decided on November 29, 2007 , LexisNexis #0308-133