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§ 554

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

In re Buerge

Ruling
Abandonment, rather than sale, ordered where property was of inconsequential value.
Procedural posture

Debtor sought to compel the chapter 7 Trustee to abandon debtor's minority stock interest in two closely held bank holding companies. The Trustee sought an order approving the sale of the stock to debtor's most significant creditor.

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Consumer opinion summary, case decided on September 06, 2012 , LexisNexis #1012-054

In re Garcia

Ruling
Relief from stay granted to allow in rem relief against debtor's abandoned interest in property.
Procedural posture

The Federal Deposit Insurance Corporation (FDIC), as receiver for a bank, filed a motion for relief from the automatic stay to proceed with a foreclosure action. No objections were filed.

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Consumer opinion summary, case decided on August 31, 2012 , LexisNexis #0213-091

In re SAI Holdings Ltd.

Ruling
Motion seeking abandonment of property formerly owned by debtor four years after confirmation denied as not related to bankruptcy.
Procedural posture

Movant sought an order pursuant to 11 U.S.C.S. § 554(b) requiring the Liquidating Agent to abandon real estate that was formerly owned by the chapter 11 debtor. The court asked for briefing on subject matter jurisdiction.

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Commercial opinion summary, case decided on August 03, 2012 , LexisNexis #0912-018

In re Gillis

Ruling
Debtor allowed to abandon property but bank could assert deficiency claim.
Procedural posture

A chapter 11 debtor filed a motion to abandon property to a bank in full satisfaction of the bank's claim pursuant to 11 U.S.C.S. § 554. The bank objected to the motion, arguing the abandonment in full satisfaction was contrary to the plan's language and the court's previous orders allowing the bank to foreclose on the property.

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Consumer opinion summary, case decided on July 17, 2012 , LexisNexis #0812-022

In re W.A.R. LLP

Ruling
Trustee's report of no distribution of funds that were solely owned by creditor and not property of the estate properly sustained.
Procedural posture

In an involuntary chapter 7 bankruptcy case brought against appellant debtor, the United States Bankruptcy Court for the District of Columbia overruled objections to the trustee's report of no assets for distribution and denied a motion for sanctions against appellee partner brought by the debtor and appellant creditor. Appellants sought review.

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Commercial opinion summary, case decided on January 27, 2012 , LexisNexis #0212-092

In re Kloberdanz

Ruling
Technical abandonment of property not disclosed in schedules revoked to allow trustee to proceed with sale.
Procedural posture

Before the court was the Trustee's Motion to Revoke Technical Abandonment Under 11 U.S.C.S. § 554(c) (the "Revocation Motion"), debtor's response thereto, and the Trustee's Application for Authority (A) to Employ and Compensate a company as Auctioneer and (B) to Sell Property of the Estate Free and Clear of Liens, Claims, and Interests Pursuant to 11 U.S.C.S. § 363(b)(1) by Public Auction (the "Application"), and debtor's response thereto.

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Consumer opinion summary, case decided on November 21, 2011 , LexisNexis #0112-035

Hearn v. Persels & Assocs. PLLC (In re Hearn)

Ruling
Abandonment of claim against debtor's former lawyer and subsequent discharge did not prevent proceeding for disgorgement of fees.
Procedural posture

Debtor's former lawyer moved to dismiss an adversary complaint filed by debtor under 11 U.S.C.S. § 329 and Fed. R. Bankr. P. 2017 for rulings that amounts paid to defendant to enroll in a debt resolution plan (DRP) exceeded the reasonable value thereof; that the DRP enrollment was properly cancelled; and that debtor was entitled to recover all the payments. Defendant claimed that the court lacked subject matter jurisdiction.

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Consumer opinion summary, case decided on November 04, 2011 , LexisNexis #1211-055

Donarumo v. Furlong (In re Furlong)

Ruling
Judgment that trustee abandoned debtors' claims against seller of assets, but not stock of corporate debtor, affirmed.
Procedural posture

Appellants and cross-appellant debtors challenged a decision of the U.S. District Court for the District of Massachusetts, which affirmed bankruptcy court decisions, ruling that the trustee had abandoned all claims in the debtors' personal and corporate bankruptcy cases by operation of law under 11 U.S.C.S. § 554(c), but not the stock of the corporate debtor.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on November 01, 2011 , LexisNexis #1111-092

Roggio v. City of Gardner

Ruling
Debtor lacked standing to pursue unscheduled but not abandoned cause of action.
Procedural posture

Plaintiffs, a bankruptcy debtor and her husband, sued defendants under 42 U.S.C.S. § 1983 and federal and state privacy laws. The court stayed the debtor's claims to allow the debtor to seek authority to treat the claims as abandoned by the bankruptcy estate. The debtor requested that the stay be lifted.

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Consumer opinion summary, case decided on September 16, 2011 , LexisNexis #1011-055