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§ 554

Rajala v. Liberty Bank (In re Buerge)

Ruling
Trustee lacked standing to proceed against abandoned interest in stock owned by debtor.
Issue(s)
Could trustee seek to avoid bank's security interest in stock owned by debtor and previously ordered abandoned by the bankruptcy court.

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Consumer opinion summary, case decided on October 15, 2013 , LexisNexis #1113-026

Rajala v. Buerge (In re Buerge)

Ruling
Lien on debtor's abandoned interest in stock was not avoidable.
Issue(s)
Did trustee have standing to seek avoidance of lien in stock that debtor had abandoned.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on August 13, 2013 , LexisNexis #0913-056

In re Holzapfel

Ruling
Debtor's pending state court action arising out of 1977 stock purchase and commenced more than 10 years after case was closed could be abandoned.
Procedural posture

A debtor filed an amended motion for entry of an order directing a chapter 7 trustee to abandon certain property of the estate, a pending state court action, pursuant to 11 U.S.C.S. § 554. The defendant in the state court case objected to the motion.

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Consumer opinion summary, case decided on May 15, 2013 , LexisNexis #0613-035

Bruegge v. WBCMT 2007-C33 MID Am. Lodging (In re Estate of HIE of Effingham LLC)

Ruling
Improper abandonment order modified but mortgage on property could not be avoided.
Procedural posture

Bankruptcy trustee brought an adversary proceeding against mortgage creditor seeking to modify a stipulated order which provided for abandonment of a bankruptcy debtor's hotel property based on a settlement upon which the debtor defaulted, and seeking to avoid the creditor's mortgage lien as unenforceable. The trustee moved to modify the stipulated abandonment order and the creditor moved to dismiss the avoidance claim.

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Commercial opinion summary, case decided on March 29, 2013 , LexisNexis #0513-129

Kelley v. Centennial Bank (In re Kelley)

Ruling
Order requiring debtor to convey property to bank did not call for §554 abandonment.
Procedural posture

Debtors challenged an order of the U.S. Bankruptcy Court for the Eastern District of Arkansas--Little Rock, requiring them to convey real property to bank.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on January 30, 2013 , LexisNexis #0213-090

In re Nordike

Ruling
Order modified to remove provisions for abandonment of property where original motion was not served on all creditors.
Procedural posture

Chapter 7 trustee and an unsecured creditor of the debtor filed a motion to modify a court order to remove any provisions of the order purporting to abandon certain real property from the bankruptcy estate pursuant to 11 U.S.C.S. § 554.

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Consumer opinion summary, case decided on January 04, 2013 , LexisNexis #0113-121

In re Fialkowski

Ruling
Motion to compel trustee to abandon exempt bank account granted but stayed until closing of case.
Procedural posture

The chapter 7 trustee filed a motion seeking an order directing the debtor to turn money in a bank account over to the trustee under 11 U.S.C.S. § 542. The debtor filed a motion seeking to compel the trustee to abandon the "exempt" bank account under 11 U.S.C.S. § 554(b).

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Consumer opinion summary, case decided on December 03, 2012 , LexisNexis #1212-126

In re Roszowski

Ruling
Debtor could not avoid homeowners' association lien on condominium which had been foreclosed on prior to petition date.
Procedural posture

Debtor filed a petition under chapter 7 of the Bankruptcy Code and sought an order under 11 U.S.C.S. § 522(f) which avoided a judicial lien a homeowners' association (HOA) held on real and personal property. The HOA filed a motion seeking an order under 11 U.S.C.S. § 554(b) which required the chapter 7 trustee to abandon personal property the debtor left in a condominium the HOA purchased.

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Consumer opinion summary, case decided on November 05, 2012 , LexisNexis #1112-127

In re Corn Advantage Coop.

Ruling
Trustee ordered to abandon estate's interest in partnership through notice of abandonment rather than technical abandonment.
Procedural posture

Pending was a creditor's Motion for Alternate Disposition of Estate Assets and Objection to Trustee's Final Report. Specifically, a creditor objected to the Trustee's proposal to allow the estate's interest in a partnership to revert to debtor through technical abandonment after closing of the case. It requested that the Trustee allow it to purchase the interest. The Trustee and U.S. Trustee (UST) objected to the creditor's alternate disposition.

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Commercial opinion summary, case decided on September 14, 2012 , LexisNexis #1012-025

In re Willis Enters.

Ruling
Bank's motion for abandonment of funds denied due to failure to promptly assert lien rights after turnover to trustee.
Procedural posture

A bank turned over funds in a bankruptcy debtor's deposit account to a bankruptcy trustee, and the bank claimed a security interest in the funds. Pursuant to 11 U.S.C.S. § 554(b), the bank moved to compel the trustee to abandon the funds which were of inconsequential value to the bankruptcy estate.

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Commercial opinion summary, case decided on September 10, 2012 , LexisNexis #1012-055