tag:blogger.com,1999:blog-38263655354364013822024-02-07T22:26:15.913-08:00FLINT BANKRUPTCY (810) 235-1970Bankruptcy Attorney Terry Bankert offers debt relief to you by filing a bankruptcy petition to eliminate your debt or give you time by stopping collection, foreclosure and repossession. CAll 810-235-1970Unknownnoreply@blogger.comBlogger15125tag:blogger.com,1999:blog-3826365535436401382.post-80097702651080837172013-01-10T10:42:00.000-08:002013-01-10T10:42:54.635-08:00WHY FILE FOR CHAPTER 13 BANKRUPTCY, Terry Bankert Flint Bankruptcy Attorney 235-1970<div dir="ltr" style="text-align: left;" trbidi="on">
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<span class="contbody" style="font-size: 0.875rem;">One of the most common reasons a debtor chooses to file a Chapter 13 case is to prevent the foreclosure of the debtor’s residence by the mortgage company. Therefore, an important deadline for filing a Chapter 13 case is before the foreclosure sale. There are numerous deadlines to be concerned with, and most are far more subtle than the foreclosure sale. The following should be considered:</span></div>
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<li class="contlist" style="font-size: 0.875rem; padding-top: 20px;"><i>Repossession. </i>The automatic stay provided by <a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000362----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">11 USC 362(a)</a>will stop repossession from occurring; furthermore, filing the Chapter 13 petition before the sale of the vehicle by the secured claim holder will stop the sale as well, even if the debtor is not in possession of the vehicle at the time the petition is filed.</li>
<li class="contlist" style="font-size: 0.875rem; padding-top: 20px;"><i>Means test. </i>The applicable commitment period (three to five years) of the Chapter 13 plan is determined by a calculation requiring the determination of current monthly income. <a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001325----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">11 USC 1325(b)(4)</a>. <i>Current monthly income </i>in a Chapter 13 case is defined as “the average monthly income from all sources that the debtor [and the debtor’s spouse] receives …, derived during the 6-month period ending on the last day of the calendar month immediately preceding the date of the commencement of the case.” <i>See </i><a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000101----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">11 USC 101(10A)(A)</a>;<a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001322----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">1322(d)</a>. The length of the debtor’s plan may vary, depending on when the case is filed. <i>See </i><a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001325----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">11 USC 1325(b)</a>.</li>
<li class="contlist" style="font-size: 0.875rem; padding-top: 20px;"><i>Credit counseling. </i><a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000109----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">11 USC 109(h)</a> requires the debtor to receive a “briefing … that outlined the opportunities for available credit counseling” during the 180 days preceding the filing of the petition. If possible, the debtor should wait to file the petition until the day after the briefing was received.</li>
<li class="contlist" style="font-size: 0.875rem; padding-top: 20px;"><i>Residential lease. </i>If possible, the debtor should file his or her Chapter 13 case before the entry of a judgment of possession by a residential lessor. The automatic stay may expire 30 days after the petition is filed if a judgment of possession was obtained prepetition. <i>See </i><a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000362----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">11 USC 362(b)(22)</a>.</li>
<li class="contlist" style="font-size: 0.875rem; padding-top: 20px;"><i>Eligibility based on debt limits under <a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000109----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">11 USC 109(e)</a>. </i>Since contingent, unliquidated debt does not count towards the debt limits set forth in <a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000109----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">11 USC 109(e)</a>, the debtor may need to file his or her petition before a debt becomes noncontingent or liquidated.</li>
<li class="contlist" style="font-size: 0.875rem; padding-top: 20px;"><i>Eligibility under <a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000109----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">11 USC 109(g)</a> based on earlier filings. </i>A debtor is ineligible for bankruptcy relief under <a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000109----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">11 USC 109(g)</a> if he or she had a case pending within the 180 days before filing the petition and that case was dismissed “for willful failure of the debtor to abide by orders of the court, or to appear before the court in proper prosecution of the case” or the debtor voluntarily dismissed his or her case after a motion for relief from the automatic stay was filed.</li>
<li class="contlist" style="font-size: 0.875rem; padding-top: 20px;"><i>Discharge under other chapters of the Code. </i>If a debtor has received a Chapter 7, 11, or 12 discharge in a case filed during the four years before filing the present case, or a Chapter 13 discharge in a case filed during the two years before filing the present case, he or she is not eligible for a discharge. <a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001328----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">11 USC 1328(f)</a>. The debtor may file the case and obtain the protection of the automatic stay; however, the debtor will not receive a discharge. This potentially results in a debtor’s successfully completing a Chapter 13 plan and subsequently having to pay his or her prepetition debt.</li>
<li class="contlist" style="font-size: 0.875rem; padding-top: 20px;"><i>Taxes. </i><a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000507----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">11 USC 507(a)(8)</a> establishes the time frame for priority treatment of income taxes. Because priority claims must be paid in full (<i>see </i><a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001322----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">11 USC 1322(a)(2)</a>), the debtor may be able to delay filing the Chapter 13 case until the tax claims become unsecured nonpriority claims and therefore subject to payment with all other general unsecured creditors.</li>
<li class="contlist" style="font-size: 0.875rem; padding-top: 20px;"><i>Extension or imposition of the automatic stay. </i>If the debtor has had one or more cases pending within the one year preceding the filing of the present case, but dismissed, the automatic stay may expire 30 days after the case is filed or not even come into effect. <a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000362----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">11 USC 362(c)(3)</a> and (4).</li>
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<span class="contbody" style="font-size: 0.875rem;">A debtor’s prepetition domicile may have an impact on venue and exemptions. <i>See </i><a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000522----000-.html" style="color: #002c77; font-size: 0.875rem;" target="ICLE">11 USC 522(b)(3)(A)</a>.</span></div>
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<span class="contbody" style="font-size: 0.875rem;"><span style="background-color: #e5e5e5;">Handling Consumer and Small Business Bankruptcies in Michigan ch 2 (Richardo I. Kilpatrick et al eds, ICLE 2009), at http://www.icle.org/modules/books/chapter.aspx?lib=bankruptcy&book=2009550820&chapter=02 (last updated 12/28/2012).</span></span></div>
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Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3826365535436401382.post-2895821901049151882012-12-16T15:29:00.000-08:002012-12-16T15:29:28.033-08:00FLINT BANKRUPTCY SERVICE ARE OFFERED BY FLINT BANKRUPTCY LAWYER TERRY BANKERT 235-1970, http://www.attorneybankert.com<div dir="ltr" style="text-align: left;" trbidi="on">
<span id="internal-source-marker_0.3982982090003083" style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">FLINT</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline;"> BANKRUPTCY</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> SERVICE ARE OFFERED BY FLINT </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline;">BANKRUPTCY</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> LAWYER TERRY BANKERT 235-1970</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">Duty to Attend</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline;"> Flint Bankruptcy</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Hearings and Creditors’ Meetings</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">The </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline;">Flint Bankruptcy </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">debtor must attend and submit to examination under oath at the meeting of creditors held in their Flint Area bankruptcy case.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000343----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 343</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">. </span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">A meeting with the </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline;">Bankruptcuy Trustee </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> must be held not less than 21 days or more than 40 days after a case is commenced for Chapter 7 liquidation or Chapter 11 reorganization cases, not less than 21 days or more than 35 days after a case is commenced for Chapter 12 family farmer or fisherman debt-adjustment cases, or not less than 21 days or more than 50 days after a case is commenced for Chapter 13 individual debt adjustment cases. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">See</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule2003"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">Bankruptcy Rule 2003(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">. </span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">The meeting may be held as late as 60 days after the case is commenced if it is held at a place not regularly staffed by the trustee. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">Id. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">The meetings may be held in the courtroom, although the Flint Bankruptcy judge will not attend the meeting, or at some other location designated by the U.S. trustee.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000341----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 341</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">;</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule2003"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">Bankruptcy Rule 2003</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">. </span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">All the creditors the Flint Bankruptcy debtor has listed on his or her schedules and filed with the court must receive written notice that includes the date, time, and place of this meeting. </span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">Remember that the Flint Bankruptcy debtor’s attendance at this meeting is mandatory and will be excused only under extraordinary circumstances. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">See, e.g., In re Owens</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">, 221 BR 199 (Bankr WD Tenn 1998).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">If the Flint Bankruptcy judge to whom your client’s case has been assigned elects to hold a discharge Flint Bankruptcy Hearing, your client is obliged to attend.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000521----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 521(a)(5)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">,</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000524----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">524(d)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">. </span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> The Flint / Genesee BankruptcuTrustee</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Appointment</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">In Chapter 7, 12, and 13 cases, the U.S. trustee appoints a trustee to administer the assets of the Flint Bankruptcy debtor for the benefit of creditors.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000323----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 323</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">. Promptly after the order of relief is entered in a Chapter 7 case, the U.S. trustee selects an interim trustee, who will continue to serve as trustee unless a different one is elected at the meeting of creditors.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000701----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 701</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">,</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000702----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">702</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">. The appointed trustee must file a bond with the court to ensure the faithful performance of his or her statutory duties.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000322----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 322(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">;</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule2010"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">Bankruptcy Rule 2010</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">The court does not automatically appoint a trustee in Chapter 11 cases. Instead, the Flint Bankruptcy debtor-in-possession is charged with the responsibility of administering the estate. </span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">However, if sufficient cause exists, the court may displace the Flint Bankruptcy debtor-in-possession by appointing a trustee. In this context, cause includes fraud, dishonesty, incompetence, or gross mismanagement.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001104----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 1104(a)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule2007.1"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">Bankruptcy Rule 2007.1</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> was amended to implement</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001104----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 1104(b)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> and allows creditors (within 30 days after the court orders the appointment of a trustee) to request a meeting to elect a disinterested person as the trustee in a Chapter 11 case.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule2007.1"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">Bankruptcy Rule 2007.1(b)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">. Notice of this meeting must be given in accordance with</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule2002"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">Bankruptcy Rule 2002</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">In Chapter 12 and 13 cases, the U.S. trustee will normally appoint a standing trustee to administer cases that are venued in certain counties in the judicial district.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> Duties</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">The trustee in Chapter 7 cases may operate the Flint Bankruptcy debtor’s business, but only if the court permits.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000721----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 721</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">. The Chapter 7 trustee’s primary duty, however, is to reduce all nonexempt property to cash as quickly as possible and distribute the money to creditors.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000704----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 704(a)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">. The trustee must also see that the Flint Bankruptcy debtor performs his or her stated intentions regarding the collateral securing individual consumer debts.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000704----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 704(a)(3)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">. The remainder of a Chapter 7 trustee’s duties are specified in</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000704----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 704</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> and</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule2015"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">Bankruptcy Rule 2015(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">Chapter 12 and 13 trustees are primarily responsible for analyzing proposed payment plans and ensuring that Flint Bankruptcy debtors comply with the terms of their confirmed plans, especially the payment provisions. Unlike trustees in Chapter 7 cases, Chapter 12 and 13 trustees will normally not liquidate the Flint Bankruptcy debtors’ assets. Rather, these trustees will distribute to creditors monies that the Flint Bankruptcy debtors are required to pay in accordance with their confirmed plans. In Chapter 12 cases, however, if a Flint Bankruptcy debtor-in-possession is removed for cause under</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001204----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 1204(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">, the standing trustee will step in and operate the Flint Bankruptcy debtor’s farming or fishing business. See</span><a href="http://www.icle.org/Modules/Books/Chapter.aspx?lib=general&book=2007553820&chapter=10#i2007553820-10-87"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">§10.87</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">The trustees in Chapter 7, 11, 12, and 13 also have certain monitoring and reporting requirements with respect to domestic support obligations.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000101----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 101(14A)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">,</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000704----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 704(a)(10)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> and (c)(10),</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001106----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 1106(a)(8)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> and (c),</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001202----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 1202(b)(6)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> and (c), and</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001302----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">11 USC 1302(b)(6)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> and (d).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">FLINT BANKRUPTCY SERVICE ARE OFFERED BY FLINT BANKRUPTCY LAWYER TERRY BANKERT 235-1970, </span><a href="http://www.attorneybankert.com/"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">http://www.attorneybankert.com</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span></div>
Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3826365535436401382.post-68589697480214308262012-06-21T06:41:00.000-07:002012-06-21T06:41:29.940-07:00FRONT LOADED SPOUSAL SUPPORT AND TAX IMPLICATIONS<div dir="ltr" style="text-align: left;" trbidi="on">
<b id="internal-source-marker_0.7973639974370599" style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">FYI-Flint Divorce Bankruptcy Attorney Terry R. Bankert 235-1970, </span><a href="http://www.attorneybankert.com/"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">www.attorneybankert.com</span></a><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"> asks DID YOU KNOW?.From Creative Tax and Financial Planning to Settle the Challenging Divorce Case Joseph W. Cunningham Joseph W. Cunningham JD CPA PC Troy</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">What are Section 71 payments?</span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="font-family: Arial;"><span style="font-size: 15px; white-space: pre-wrap;"><br /></span></span><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">1. They are essentially another name for alimony, or spousal support, payments</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">that qualify as taxable to the payee under IRC Section 71 and deductible by</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">the payer under IRC Section 215.</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">C. What are the “front loading” rules</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">1. In addition to the above Section 71 requirements, a series of payments must</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">not be excessively “front loaded”.</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">2. This means that payments scheduled over a period of years may not be</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">skewed toward the front end of the period so that a disproportionately large</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">portion of the total will be paid in the early years of the payment schedule</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">(which would be the tendency if the payments actually represented property</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">rather than support).</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">3. The front-loading rules are more complicated than the other requirements</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">under IRC 71. But, a basic understanding is necessary for attorneys to effectively</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">use Section 71 payments.</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">a. In short, payments that are excessively front loaded during a three-year</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">measuring period must be “recaptured”, which means that the payer,</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">who deducted the payments, must now report them as income, and the</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">payee, who was originally taxed on the payments, is now entitled to a</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">deduction.</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">b. If a decline in payments that would otherwise result in alimony recapture</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">occurs because of one of the following events, no recapture is</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">required:</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">• death of either spouse</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">• remarriage of the payee spouse</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">• fluctuations of income outside the control of the payer provided</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">the payer is obligated to pay a fixed portion or percentage of an</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">income stream (such as a bonus paid pursuant to a formula, rent or</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">royalty income from a property interest, etc.) for at least three</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">years.</span><br /><span style="font-family: Arial;"><span style="font-size: 15px; white-space: pre-wrap;"><br /></span></span><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">c. Recapture is determined according to when payments are actually</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">made, not when they are scheduled.</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">d. Recapture rules do not apply to temporary alimony paid during pendency</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">of divorce.</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">4. Steps for computing alimony recapture</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">a. The measuring period is the three successive calendar years beginning</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">with the year in which payments commence pursuant to the divorce or</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">separation instrument. They are referred to as the “post-separation</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">years.” The test for recapture consists of the following two steps.</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">i. The total paid in the third calendar year is added to a $15,000 statutory</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">allowance. The sum is then subtracted from the total paid in</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">the second year. Any difference is recapture.</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">ii. Then the average of payments made in years two (net of recapture,</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">if any) and three is added to the $15,000 statutory allowance. The</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">sum is subtracted from the total paid in year one. Once again, any</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">difference is recapture</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">b. The total amount of recapture from years one and two is reported as</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">income by the payer and claimed as a deduction by the payee in year</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">three.</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">c. Examples illustrating the application of the alimony recapture rules are</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">presented on Exhibit 1.</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">5. Rules of Thumb Regarding Alimony Recapture—Awareness of a few simple</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">rules of thumb is generally sufficient to avoid running afoul of recapture</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">strictures.</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">a. Declining Payments Only—Recapture only applies to a schedule of</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">payments that declines from year to year over the three-calendar-year</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">measuring period. It does not apply if payments are level or increase.</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">b. $15,000 Threshold—If payments do not exceed $15,000 annually,</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">there cannot be recapture because of a $15,000 statutory allowance.</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">The rules only come into play if payments total more than $15,000 in</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">first and/or second of the three calendar years beginning with the first</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">year in which payments are made.</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;"><br /></span></b><br />
<b style="font-weight: normal; text-align: -webkit-auto;"><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">c. $10,000 Safe Harbor—There will never be recapture if the reductions</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">in total payments between years one and two and then between years</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">two and three do not exceed $10,000 each. To illustrate, no recapture</span><br /><span style="background-color: transparent; font-family: Arial; font-size: 15px; vertical-align: baseline; white-space: pre-wrap;">results from the payment schedule shown below:</span></b>
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3826365535436401382.post-76619138752873863602012-03-27T04:43:00.001-07:002012-03-27T04:43:33.869-07:00Flint Michigan should discuss filing for Chapter 9 Bankruptcy<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="background-color: white; color: #333333; font-family: "Trebuchet MS"; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">FLINT MICHIGAN SHOULD CONSIDER OUR OWN BAIL OUT WITH A CHAPTER 9 MUNICIPAL BANKRUPTCY..</span><br /><span style="background-color: white; color: #333333; font-family: "Trebuchet MS"; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: white; color: #333333; font-family: "Trebuchet MS"; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">News reports show We could be witnessing soon the largest Chapter 9 bankruptcy filings in the history of the U.S.? Several on MLIVE have speculated that the City of Flint should declare bankruptcy. The City of Flint has been struggling throughout the Great Recession and now faces high unemployment and rising crime rates. The City of Flint has also been listed as one of the nation's most violent cities and currently is under the control of an Emergency Manager appointed by Michigan Governor</span><br /><span style="background-color: white; color: #333333; font-family: "Trebuchet MS"; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: white; color: #333333; font-family: "Trebuchet MS"; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The demise of the auto related jobs, high foreclosure problems contributed to a municipal decline. The banks collapsed and home prices plummeted.With the empty houses, the city officials are collecting less property taxes. These are not the only contributing factor to the demise of Flints economy. It doesn't look like Flint is headed for Chapter 9 bankruptcy anytime soon, but it may be time for local officials to heed the warning that Flint current Emergency Manager may not be able to solve Flints financial demise. A public discussion of Chapter 9 Bankruptcy should begin in Flint. </span><br /><span style="background-color: white; color: #333333; font-family: "Trebuchet MS"; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: white; color: #333333; font-family: "Trebuchet MS"; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Is municipal bankruptcy all bad? How can things get worse?</span><br /><span style="background-color: white; color: #333333; font-family: Verdana; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: white; color: #333333; font-family: Verdana; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">These Chapter 9 Bankruptcies are being seriously considered in other parts of the country, why not here? </span><br /><span style="background-color: white; color: #333333; font-family: Verdana; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: white; color: #333333; font-family: Verdana; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">MARCH 5 2012 -Recently a federal judge ruled Alabama ‘s Jefferson County can go ahead with its $4.23 billion bankruptcy case, the biggest ever by an American municipality. The recent late Sunday ruling by U.S. Bankruptcy Judge Thomas Bennett opens the road for the county to restructure more than $3 billion in debt incurred as a result of an expensive sewer-system overhaul, as well as other liabilities. Sound familiar. Flint Mayors and City Councils have allowed the looting of our water and sewer fund. </span><span style="background-color: white; color: #333333; font-family: "Trebuchet MS"; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: white; color: #333333; font-family: "Trebuchet MS"; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: white; color: #333333; font-family: Verdana; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">MARCH 5 2012-Cases brought by other U.S. municipalities, such as Harrisburg, Pennsylvania, have been thrown out by other federal judges in recent months. The city of Stockton, California, last week decided to default on its debt in an effort to avoid becoming the most populous U.S. city to file for bankruptcy</span><br /><span style="background-color: white; color: #333333; font-family: Verdana; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: white; color: #333333; font-family: Verdana; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">What is a Chapter 9 Bankruptcy. It is properly titled “adjustment of debts” of a municipality and is commonly referred to as a “municipal reorganization”. It is similar to a Chapter 11 Business reorganization. </span><br /><span style="background-color: white; color: #333333; font-family: Verdana; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: white; color: #333333; font-family: Verdana; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">A Chapter 9 will allow Flint to reorganize its debt under the protection of a Federal Court. Flint can start the process by filing a petition and a plan for reorganization with the court. The plan proposed a repayment of the municipal debt broken down by class of creditor over a period of time.</span><br /><span style="background-color: white; color: #333333; font-family: Verdana; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: white; color: #333333; font-family: Verdana; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Chapter 9 City gets a discharge of debt when the plan is confirmed. The Court Maintains jurisdiction to make sure the plan is complied with.</span><br /><span style="background-color: white; color: #333333; font-family: Verdana; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: white; color: #333333; font-family: Verdana; font-size: 16px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Citizens should seriously consider and debate these options then apply pressure for action where we can.</span></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3826365535436401382.post-18209541753125253712012-03-20T04:17:00.001-07:002012-03-20T04:32:35.153-07:00BANKRUPTCY REDEEMPTION, KEEP CAR IN BANKRUPTCY FOR WHAT IT IS REALLY WORTH!<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">WITH OVER $10,000 IN CHAPTER SEVEN BANKRUPTCY DEBTOR CAN REDEEM HIS CAR FOR $1,400</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> ON PROPER MOTION</span><br />
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<span style="font-family: Arial;">What many debtors/ citizens do not know is that thye can keep their car by paying only what it is worth not what is owed.</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In a Chapter 7 Bankrutpcy you may keep your car if it has a value of $3,400 or lesst within in one exemption. The lein still continues and you commonly are told you have to reaffirm the entir debt to keep your car. But whjat if your vehicle is worth much less than what you owe on it?</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In a Chapter 7 liquidation case, an individual debtor may redeem certain "tangible personal property intended primarily for personal, family, or household use" that is encumbered by a lien. To qualify, the property generally either (A) must be exempt under section 522 of the Bankruptcy Code, or (B) must have been abandoned by the trustee under section 554 of the Bankruptcy Code. To redeem the property, the debtor must pay the lienholder the full amount of the applicable allowed secured claim against the property.</span><a href="http://en.wikipedia.org/wiki/Bankruptcy_in_the_United_States#cite_note-35"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"> [3]</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">BANKRUPTCY, CAR, REDEMPTION posted here by Bankruptcy Attorney Terry Bankert in note , cited format. For additional information call 810-235-1970</span><br />
<br />see also <br />
<a href="http://occupyflintlegal.wordpress.com/2012/03/20/save-car-in-bankrutpcy-pay-only-what-it-is-worth/">http://occupyflintlegal.wordpress.com/2012/03/20/save-car-in-bankrutpcy-pay-only-what-it-is-worth/</a><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">BANKRUPTCY, CAR, REDEEMPTION posted here by Bankruptcy Attorney Terry Bankert in note , cited format. For additional information call 810-235-1970</span><br />
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<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">To cause this reduced buy out you will probably have to go before a bankrutpcy judge. §3.109</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Pursuant to</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule1007"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 1007</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> and</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000722----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 722</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, the debtor may file a motion with the court to allow the [2]</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">An example of the most common redemption of personal property is the redemption of a car. The fair market value of a car may be thousands of dollars less than what is owed on the loan. The debtor has the option of purchasing the car from the lender for the amount of the replacement or current market value of the car. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[2]</span><br />
<br />
<span style="font-family: Arial;">YOU WILL MOTION THE FEDERAL BANKRUPTCY JUDGE TO REDEEM YOUR PROPERTY</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> This can be accomplished through negotiation; however, it is most often done by a motion to redeem personal property. A motion of this type will most often be a contested matter that will require testimony and an appraisal of the asset in question. Thus, it is usually up to the court to approve the redemption and valuation. [2] </span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Value is often contested at this motion; however, once this is settled, the debtor pays the lender the fair market value of the property and the title is transferred.</span><a href="http://www.icle.org/Modules/Books/FormBookDetail.aspx?ID=ban1013&book=2009550820&chapter=3&chap_sect=&FormExhibit=exhibit&lib=bankruptcy"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Form 3.6</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> is a sample motion for redemption of personal property.[SEE BELOW]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">D. Payment to the Creditor [2] </span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
EXAMPLE FROM RECENT COURT OPINION<a href="http://en.wikipedia.org/wiki/Bankruptcy_in_the_United_States#cite_note-35"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">CNAC Motor Car Credit Co. appeals an order of the bankruptcy court granting Steven M. Perales’ motion to redeem his 2002 Dodge Neon for a lump sum of $1,400. For the reasons that follow, we affirm the bankruptcy court’s order. [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[The writers purpose here is to review the use of a redemption motion in a chapter seven bankruptcy. Most arguments as to valuation are stricken. Note this opinion has been altered for media presentation. Consult the original and legal counsel before you rely on content presented here.- Terry Bankert]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">FINAL ORDERS OF A MICHIGAN BANKRUPTCY COURT ARE APPEALED TO THE 6TH CIRCUIT COURT</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">III. FACTS</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">$10,014 OWED ON CAR CITIZEN FILES FOR CHAPTER SEVEN BANKRUPTCY</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">On February 11, 2011, Steven M. Perales (“Debtor”) filed a voluntary petition for relief under</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">chapter 7 of the Bankruptcy Code. Listed on Schedule B was a debt owing CNAC Motor Car Credit</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Co. (“CNAC”) in the amount of $10,014. The debt to CNAC is secured by a 2002 Dodge Neon. [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">CITIZEN FILED A MOTION TO REDEEM AT LESS THAN THE AMOUNT OWED IN CHAPTER SEVEN?</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">On April 25, 2011, the Debtor filed a motion to redeem the 2002 Dodge Neon for the lump</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">sum of $1,132 pursuant to 11 U.S.C. § 722 and Federal Rule of Bankruptcy Procedure 6008.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Attached to the Debtor’s motion was a printout from Edmonds.com showing that the trade-in value</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">of the vehicle was $792, the private party sale value was $1,132, and the dealer retail was $1,586. [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">ONLY THE VALUATION WAS ARGUED?</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">At both the hearing before the bankruptcy court 1 on the Debtor’s motion and on appeal,</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">CNAC argues only that the valuation was improper. [The Court found the valuation to be $1,400-trb] [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">THE COMPANY HOLDING THE NOTE ON THE CAR FILED FOR RELIEF FROM THE AUTOMATIC STAY.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The notice also indicated that the bankruptcy court would conduct a hearing on CNAC’s</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">motion for relief from the automatic stay at the same time. [1]</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">CITIZEN FILED A MOTION TO REDEEM UNDER 11 USC SEC. 722</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Debtor’s motion also included a “Notice of Motion to Redeem” which indicated that any party</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">opposing the requested relief must file a written response with the bankruptcy court by May 25,</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">2011. CNAC received notice of the Debtor’s motion. [1]</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">CITIZENS MOTION WAS OPPOSED</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">CNAC filed a Motion in Opposition to the Debtor’s Motion to Redeem on April 28, 2011.</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">DID THE CITIZEN GET IT WRONG AND NO PART OF THE DEBT WAS DISCHARGEABLE?</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In its opposition, CNAC asserted that the vehicle was not exempt, was not abandoned, and that the</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">debt thereon was not dischargeable. [1]</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">CITIZENS OWES US $10,013.54 SAYS COMPANY.....</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">ISSUES AT HEARING</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">COMPANY HAS A RETAIL CONTRACT, PAY OR RETURN THE CAR IT SAYS TO CITIZEN</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Counsel for CNAC argued that because there was a retail installment contract</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">which had not been paid in full, the Debtor must either return the vehicle or pay the entire</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">outstanding balance of $10,014 to redeem it. Again, CNAC provided no evidence to the court</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">regarding the value of the vehicle. [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">OOPS COMPANY FORGOT TO ARGUE THE MOST IMPORTANT ISSUE</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Although CNAC originally stated in its opposition to the Debtor’s motion to redeem that the vehicle was not subject to redemption, it did not make such assertions before the bankruptcy court at the June 6, 2011 hearing. CNAC also failed to make those assertions in this appeal. Therefore, the only dispute before the bankruptcy court, and now before the Panel, concerns the amount the Debtor must pay CNAC to redeem the vehicle. [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">CITIZENS CAN REDEEM THEIR CAR AND OTHER PERSONAL PROPERTY</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">A. In General</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§3.107</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Redemption of personal property is a process by which the debtor purchases the secured property for the amount of the allowed secured claim. What this means is that the debtor may buy the secured property for the current fair market value of that secured property.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000722----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 722</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Note that the property must be intended for the personal, family, or household use of the debtor. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Id.</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> [2] </span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">11 USC SECTION . 722 An individual debtor may, whether or not the debtor has waived the right to redeem under this section, redeem tangible personal property intended primarily for personal, family, or household use, from a lien securing a dischargeable consumer debt, if such property is exempted under section</span><a href="http://www.law.cornell.edu/uscode/text/11/usc_sec_11_00000522----000-"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">522</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> of this title or has been abandoned under section</span><a href="http://www.law.cornell.edu/uscode/text/11/usc_sec_11_00000554----000-"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">554</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> of this title, by paying the holder of such lien the amount of the allowed secured claim of such holder that is secured by such lien in full at the time of redemption.</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">11 USC SECTION 522 EXEMPTION AS TO PERSONAL PROPERTY</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">(a)In this section—</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">(2)“value” means fair market value as of the date of the filing of the petition or, with respect to property that becomes property of the estate after such date, as of the date such property becomes property of the estate.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">(2)The debtor’s interest, not to exceed $3,400 in value, in one motor vehicle.</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">11USCSECTION 524 - WHAT IS THE “ALLOWED SECURED CLAIM”.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">“What if your creditor has a security interest or lien? Your bankruptcy discharge does not eliminate any lien on your property. A ‘lien’ is often referred to as a security interest, deed of trust, mortgage or security deed. Even if you do not reaffirm and your personal liability on the debt is discharged, because of the lien your creditor may still have the right to take the property securing the lien if you do not pay the debt or default on it. If the lien is on an item of personal property that is exempt under your State’s law or that the trustee has abandoned, you may be able to redeem the item rather than reaffirm the debt. To redeem, you must make a single payment to the creditor equal to the amount of the </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">allowed secured claim, as agreed by the parties or determined by the court.”.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">An example of the most common redemption of personal property is the redemption of a car. The fair market value of a car may be thousands of dollars less than what is owed on the loan. The debtor has the option of purchasing the car from the lender for the amount of the replacement or current market value of the car. This can be accomplished through negotiation; however, it is most often done by a motion to redeem personal property. A motion of this type will most often be a contested matter that will require testimony and an appraisal of the asset in question. Thus, it is usually up to the court to approve the redemption and valuation. [2] </span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">B. Obtaining Financing</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§3.108</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Obviously, a debtor in a Chapter 7 case may have a difficult time obtaining the funds necessary to redeem the property. There is no provision in the Code allowing the redemption of personal property to take place over a period of time in the same manner as a reaffirmation agreement. That being said, when it comes to automobiles, many programs offered by lenders will allow a debtor to redeem the property by taking out a loan with a new lender. The new lender will be granted a security interest in the property and will lend at specific disclosed terms. Lenders are often willing to lend the money because the property that is being used as collateral on the loan is worth the amount owed on it; since the debtor is discharging all other obligations and cannot file another Chapter 7 bankruptcy case for eight more years,</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000727----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 727(a)(8)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, lending to the debtor is often considered a good risk. [2] </span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">C. Motion for Redemption</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§3.109</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Pursuant to</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule1007"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 1007</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> and</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000722----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 722</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, the debtor may file a motion with the court to allow the redemption of personal property. Value is often contested at this motion; however, once this is settled, the debtor pays the lender the fair market value of the property and the title is transferred.</span><a href="http://www.icle.org/Modules/Books/FormBookDetail.aspx?ID=ban1013&book=2009550820&chapter=3&chap_sect=&FormExhibit=exhibit&lib=bankruptcy"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Form 3.6</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> is a sample motion for redemption of personal property.</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">D. Payment to the Creditor [2] </span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§3.110</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Payment in full must take place pursuant to the redemption requirements at the time of the redemption. Further, the redemption process must be completed within 45 days after the first meeting of creditors. If the redemption is not completed, the automatic stay is vacated as to such personal property and the property is no longer property of the estate unless the court orders otherwise before the expiration of the 45-day period. [2] </span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">COURT RULED THE CITIZEN COULD REDEEM THE CAR FOR THE $1,400 VALUE BUT HAVING A $10,014 BALANCE DUE.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">At the conclusion of the hearing, the bankruptcy court ruled from the bench that the Debtor</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">had the right to redeem the Dodge Neon. The court further found that, after looking at several</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">sources on its own, it had arrived at a value of $1,400, which was only slightly more than the</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Debtor’s proposed value of $1,132. [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">IN A CHAPTER SEVEN DEBTOR KEEPS A CAR BY PAYING MARKET VALUE OF $1,400 WHEN $10,014 WAS OWED?</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">On June 13, 2011, the bankruptcy court entered a written order</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">granting the Debtor’s motion to redeem which directed the Debtor to pay CNAC a lump sum of</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">$1,400 within 30 days of entry of the order. CNAC’s timely notice of appeal followed on June 22,</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">2011. [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">IV. DISCUSSION</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">JUST WHAT IS AN ALLOWED SECURED CLAIM IN A REDEMPTION IN CHAPTER SEVEN BANKRUPTCYT?</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Pursuant to 11 U.S.C. § 722, an individual debtor may redeem consumer goods from a lien</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">securing a dischargeable consumer debt, if the property is exempt under 11 U.S.C. § 522 or has been</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">abandoned under § 544, by paying the lienholder in full, at the time of redemption, the amount of</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">the “allowed secured claim” that is secured by the collateral. 11 U.S.C. § 722. [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">JUST WHAT IS AN ALLOWED SECURITY CLAIM?</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The term “allowed secured claim” is not defined in the Bankruptcy Code. See, 11 U.S.C.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§ 101. However, 11 U.S.C. § 506 describes how to determine a creditor’s secured claim, and, thus,</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">what amount a debtor must pay pursuant to § 722 in order to redeem property:</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">SECURED CLAIM IS WHAT IS OWED ON THE CAR IS THE VALUE OF THE CREDITORS INTEREST.</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">An allowed claim of a creditor secured by a lien on property in which</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">the estate has an interest . . . [1]</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">THE CLAIM IS SECURED TO THE EXTENT OF ITS VALUE</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">is a secured claim to the extent of the</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">value of such creditor’s interest in the estate’s interest in such</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">property . . . [1]</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">THE CLAIM IS UNSECURED FOR THE AMOUNT OWED OVER VALUE. DOES THIS APPLY TO CHAPTER SEVEN?</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">and is an unsecured claim to the extent that the value of</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">such creditor’s interest . . . is less than the amount of such allowed</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">claim. [1]</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">THIS VALUE TO BE DETERMINED</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Such value shall be determined in light of the purpose of the</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">valuation and of the proposed disposition or use of such property, and</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">in conjunction with any hearing on such disposition or use or on a</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">plan affecting such creditor’s interest. [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">506(a)(2)</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Section 506(a)(2) further describes in more detail the method of valuing a secured claim if the debtor</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">is an individual in chapter 7 or 13. It states:</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">If the debtor is an individual in a case under chapter 7 or 13, such</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">value with respect to personal property securing an allowed claim</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">shall be determined based </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">on the replacement value</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> of such property</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">as of the date of the filing of the petition without deduction for costs</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">of sale or marketing. With respect to property acquired for personal,</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">family, or household purposes, replacement value shall mean the</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">price a retail merchant would charge for property of that kind</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">considering t</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">he age and condition of the property at the time value</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> is</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">determined. [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">506 HAS INADEQUATE CASE LAW TO DEFINE IT.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Section 506(a)(2) was added to the Bankruptcy Code in 2005 when Congress passed the</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA). Unfortunately, “no</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">consensus has emerged in the case law interpreting § 506(a)(2) as to how replacement value for</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">motor vehicles should be determined.” In re Pearsall, 441 B.R. 267, 270 (Bankr. N.D. Ohio 2010)</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">(collecting cases detailing vehicle valuation). As the Pearsall court explained, “[t]he results reached</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">ultimately seem to depend, not entirely surprisingly, on the overall record a court is presented with</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">in a particular case.” Id. Courts have employed a variety of vehicle valuation methods under</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§ 506(a)(2) ranging from use of the Kelley Blue Book or N.A.D.A. Guide retail values of a like</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">vehicle to the opinion testimony of a car salesperson as to what he would sell a vehicle for on the</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">lot. Id. at 270-71. The Sixth Circuit has not established a uniform method. [1]</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">CITIZEN SEEKING REDEMPTION HAS BURDEN</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">As the party seeking redemption, the Debtor “bear[s] the burden of proving the appropriate</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">redemption value by a preponderance of the evidence.” In re Herrera, 454 B.R. 559, 561 (Bankr.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">E.D.N.Y. 2011) (citations omitted) (collecting cases holding debtor bears burden of proving value</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">by preponderance of evidence for redemption purposes under § 722). Therefore, the Debtor here</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">bore the evidentiary burden of proving that the replacement value of his vehicle was, more likely</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">than not, $1,132, the amount he proposed to pay...... [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Fed. R. Bankr. P. 3012. The purpose of Rule 3012 is to ensure that a creditor who files a motion</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">seeking a determination of its secured status and the value of its collateral pursuant to 11 U.S.C.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§ 506 is entitled to a hearing on those issues upon notice to other interested parties. “Rule 3012 does</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">not, however, require a separate [valuation] hearing.” Piedmont Trust Bank v. Linkous (In re</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Linkous), 141 B.R. 890, 894 (W.D. Va. 1992); In re Taylor, 289 B.R. 379, 386 n.5 (Bankr. N.D. Ind.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">2003).3 “Valuation issues may also arise in connection with other requests such as redemption</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">under § 722,” Id., or confirmation of a plan. Calvert, 907 F.2d at 1072; In re Hoskins, 262 B.R. 693,</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">697 (Bankr. E.D. Mich. 2001).... [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">COMPANY SAYS CITIZEN MUST REDEEM THE CAR FOR THE FULL AMOUNT OWED NOT THE VALUATION?</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In its objection to the Debtor’s redemption motion, CNAC did not object to the Debtor’s</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Edmonds.com attachment nor did it provide any evidence of the value of the vehicle. Instead,</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">CNAC simply insisted that the vehicle should be redeemed for the full amount owed on the debt. [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">At the June 6, 2011 hearing, at which counsel for CNAC appeared, it again did not present any</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">evidence regarding the value of the vehicle, but rather stated that the redemption amount should be</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">the same as the outstanding loan. [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">COMPANY WAS SO SURE OF ITS ARGUMENT IT DID NOT ARGUE VALUATION</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">CNAC presented no evidence of value nor did it object to the evidence submitted by the Debtor. </span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">THE COMPANY DID NOT APPLU 506(a)(2) correctly. [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Rather it simply stated that the redemption value should be identical to the outstanding balance on the debt </span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">which is simply not the standard set forth under § 506(a)(2). The only evidence submitted by the parties came from the Debtor. Therefore, the Debtor met his burden of proof. [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">CITIZENS USE OF REDEMPTION HAS TO BE BY MOTION.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Pursuant to the Bankruptcy Rules, the filing of the motion to redeem is a contested matter</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">under Federal Rule of Bankruptcy Procedure 9014. [1]</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">COURT THEN MUST MAKE A DETERMINATION</span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">As a result, the court was required to make</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">findings of fact and conclusions of law pursuant to Federal Rule of Civil Procedure 52(a), made</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">applicable to contested matters in bankruptcy by Federal Rules of Bankruptcy Procedure 7052 and</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">9014. These findings and conclusions can be written or oral. The main requirement for these</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">findings is that they “must be sufficient to enable a reviewing court to determine the factual basis</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">for the court’s ruling.” Veal v. Am. Home Mortgage Serv., Inc. (In re Veal), 450 B.R. 897, 919</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">(B.A.P. 9th Cir. 2011). “This same standard applies in this Circuit even when the findings are based</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">on documentary, rather than testimonial, evidence.” Brown v.UAW, 689 F.2d 69, 71 (6th Cir. 1982).</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In the case of Corzin v. Fordu (In re Fordu), 201 F.3d 693 (6th Cir. 1999), the Sixth Circuit</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Court of Appeals stated the standard used in reviewing a decision under Federal Rule of Civil [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">V. CONCLUSION</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">For the foregoing reasons, the Panel affirms the order of the bankruptcy court granting the</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Debtor’s motion to redeem the vehicle for $1,400. [1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
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<table style="border-collapse: collapse; border-image: initial;"><colgroup><col width="596"></col><col width="27"></col></colgroup><tbody>
<tr style="height: 0px;"><td style="border-image: initial; border: 1px dotted rgb(170, 170, 170); padding: 7px; vertical-align: top;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Motion for Authority to Redeem Personal Property and Approval of Associated Financing and Attorney Fees</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></td><td style="border-image: initial; border: 1px dotted rgb(170, 170, 170); padding: 7px; vertical-align: top;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></td></tr>
<tr style="height: 0px;"><td style="border-image: initial; border: 1px dotted rgb(170, 170, 170); padding: 7px; vertical-align: top;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></td><td style="border-image: initial; border: 1px dotted rgb(170, 170, 170); padding: 7px; vertical-align: top;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></td></tr>
<tr style="height: 0px;"><td style="border-image: initial; border: 1px dotted rgb(170, 170, 170); padding: 7px; vertical-align: top;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[Insert caption.]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-align: center;">
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">MOTION FOR AUTHORITY TO REDEEM PERSONAL PROPERTY AND</span></div>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">APPROVAL OF ASSOCIATED FINANCING AND ATTORNEY FEES</span></div>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">UNDER</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000722----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 722</span></a></div>
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Debtor, by and through counsel, moves the court pursuant to</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000722----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 722</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> and</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule6008"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 6008</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> for a Redemption Order on the following grounds:</span><br />
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<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The item to be redeemed is tangible personal property intended primarily for personal, family, or household use and is more particularly described as follows:</span><div dir="ltr">
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<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Year ___</span></li>
</td><td style="border-image: initial; border: 1px dotted rgb(170, 170, 170); padding: 7px; vertical-align: top;"><br />
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<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Make ______</span></li>
</td><td style="border-image: initial; border: 1px dotted rgb(170, 170, 170); padding: 7px; vertical-align: top;"><br />
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<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Model ______</span></li>
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<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><div dir="ltr">
<table style="border-collapse: collapse; border-image: initial;"><colgroup><col width="474"></col></colgroup><tbody>
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<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-align: center;">
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">VIN #__________________________________</span></div>
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<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The interest of the Debtor in such property is exempt or has been abandoned by the estate and the debt (which is secured by this property to the extent of the allowed secured claim of the Creditor) is a dischargeable consumer debt.</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The allowed secured claim of the Creditor for purposes of redemption, the “redemption value,” should be determined to be not more than $</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[amount]</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">as evidenced by the attached written appraisal.</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Arrangements have been made by the Debtor to pay to the Creditor up to the amount above in a lump sum should this motion be granted.</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The payment for this proposed redemption is to be financed through </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[name of lender]</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, with all of the particulars of that financing (interest rate, finance charge, amount financed, total of payments, amount of payments, etc.) set forth in full detail in the attachment(s) to this motion. As demonstrated there, the monthly amount, term of the payments, and the overall amount of the repayment will be decreased significantly through the proposed redemption. Moreover, the Debtor has agreed to borrow and disperse additional funds in the amount of $</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[amount]</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, from the loan with </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[name of lender]</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, for representation of the Debtor in securing for the benefit of the Debtor an order granting the Debtor the right to redeem under</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000722----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 722</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> a certain motor vehicle, such compensation being in addition to that previously disclosed and being for services rendered beyond the scope of the legal services to have been rendered for such compensation previously disclosed.</span></li>
</ol>
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Debtor requests the Court to order the Creditor to accept from the Debtor the lump-sum payment of the redemption value and release its lien of record. In the event the Creditor objects to this motion, the Debtor requests the Court to determine the value of the property as of the time of the hearing on such objection.</span><br />
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<table style="border-collapse: collapse; border-image: initial;"><colgroup><col width="229"></col><col width="39"></col><col width="284"></col></colgroup><tbody>
<tr style="height: 0px;"><td style="border-image: initial; border: 1px dotted rgb(170, 170, 170); padding: 7px; vertical-align: top;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Dated: </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"> </span></td><td style="border-image: initial; border: 1px dotted rgb(170, 170, 170); padding: 7px; vertical-align: top;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span></td><td style="border-image: initial; border: 1px dotted rgb(170, 170, 170); padding: 7px; vertical-align: top;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[Firm name]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">By /s/</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"> </span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[Typed name of attorney (P___)]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Attorney for Debtor</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[Address, telephone]</span></td></tr>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-align: center;">
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">NOTICE</span></div>
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Notice is given that unless an objection is made to this motion within 20 days following the date of service below, an order sustaining the motion may be granted by the Court.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">CERTIFICATE OF SERVICE</span></div>
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">I certify that the foregoing has been served upon the Creditor noted above, the U.S. Trustee, and the Chapter 7 Trustee by mailing a copy of this motion by first class U.S. Mail on </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[date]</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><br />
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<table style="border-collapse: collapse; border-image: initial;"><colgroup><col width="223"></col><col width="38"></col><col width="276"></col></colgroup><tbody>
<tr style="height: 0px;"><td style="border-image: initial; border: 1px dotted rgb(170, 170, 170); padding: 7px; vertical-align: top;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span></td><td style="border-image: initial; border: 1px dotted rgb(170, 170, 170); padding: 7px; vertical-align: top;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span></td><td style="border-image: initial; border: 1px dotted rgb(170, 170, 170); padding: 7px; vertical-align: top;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"> </span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Attorney for Debtor</span></td></tr>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></td><td style="border-image: initial; border: 1px dotted rgb(170, 170, 170); padding: 7px; vertical-align: top;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></td></tr>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">source</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[1]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">BANKRUPTCY ARTICLE 03/18/12</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">By order of the Bankruptcy Appellate Panel, the precedential effect</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">of this decision is limited to the case and parties pursuant to 6th</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Cir. BAP LBR 8013-1(b). See also 6th Cir. BAP LBR 8010-1(c).</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">File Name: 12b0002n.06</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">BANKRUPTCY APPELLATE PANEL OF THE SIXTH CIRCUIT</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re: STEVEN M. PERALES,</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Debtor.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">______________________________________</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">))))</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">No. 11-8045</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Appeal from the United States Bankruptcy Court</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">for the Northern District of Ohio, Eastern Division at Canton.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Case No. 11-60366.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Decided and Filed: March 12, 2012</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Before: EMERSON, McIVOR, and PRESTON, Bankruptcy Appellate Panel Judges.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">____________________</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">COUNSEL</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">ON BRIEF: Thomas C. Loepp, MAISTROS & LOEPP, LTD., Stow, Ohio, for Appellant. Douglas</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">L. Thrush, THRUSH & ROHR, LLC, Canton, Ohio, for Appellee.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">-------------------</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[2]</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Handling Consumer and Small Business Bankruptcies in Michigan ch 3 (Richardo I. Kilpatrick et al eds, ICLE 2009), at </span><a href="http://www.icle.org/modules/books/chapter.aspx/?lib=bankruptcy&book=2009550820&chapter=03"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://www.icle.org/modules/books/chapter.aspx/?lib=bankruptcy&book=2009550820&chapter=03</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> (last updated 03/09/2012). </span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[3]</span><br />
<a href="http://en.wikipedia.org/wiki/Bankruptcy_in_the_United_States#Redemption"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 13px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://en.wikipedia.org/wiki/Bankruptcy_in_the_United_States#Redemption</span></a></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3826365535436401382.post-41114541161394189502012-03-06T03:49:00.001-08:002012-03-06T03:49:57.077-08:00BANKRUPTCY IN FLINT MI, BANKRUPTCY LAWYER TERRY BANKERT 235-1970<div dir="ltr" style="text-align: left;" trbidi="on">
<br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Bankruptcy laws are on the books to protect you. Wall Street and the big banks got their bailout Chapter Seven Bankruptcy is yours. Call Flint Bankruptcy Lawyer Terry Bankert 235-1970</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">There are times when the economy is just too hard on us and we need a debt attorney.</span><br /><a href="http://attorneybankert.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://attorneybankert.com</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
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<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">BANKRUPTCY FACTOID-</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Unruh</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 2008 WL 341465 (5th Cir 2008):</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">“For purposes of denying an amended exemption, bad faith may be shown by a gross and deliberate understatement of the value of an asset, made in an attempt to deceive creditors or the bankruptcy court. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See also In re Hannigan</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 409 F.3d 480, 484 (1st Cir.2005) (affirming a finding of bad faith where debtor had intentionally undervalued property by listing value for only one of two parcels); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Bauer</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 298 B.R. 353, 356 (8th Cir.BAP2003) (affirming a finding of bad faith where debtors substantially undervalued their home in schedules).”</span></li>
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<br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Terry Bankert is a Flint Bankruptcy Attorney that offers a free first appointment to talk about your needs.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><a href="http://terrybankert.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://terrybankert.blogspot.com</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<ol>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">BANKRUPTCY FACTOID-</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re McLain</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 2008 WL 274403 (5th Cir 2008):</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">“Chapter 7 debtors who allegedly failed to disclose funds on hand when bankruptcy petition was filed and then used funds, or portion of funds, to make first premium payment on life insurance policy could not belatedly claim undisclosed funds as exempt, to prevent trustee from reaching policy proceeds for benefit of estate.”</span></li>
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<br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">There are many debt attorneys. There are few that offer our level of servcie.</span><br /><a href="http://dumpmycreditors.wordpress.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://dumpmycreditors.wordpress.com</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<ol>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">BANKRUPTCY FACTOID-</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re McKain</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 325 B.R. 842, 851 (Bankr. D. Neb. 2005):</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">“Both the debtor and her attorney share the responsibility for the current situation. They each had a duty to make sure the schedules and statement of financial affairs were correct, and they each dropped the ball. This issue takes on even greater significance in light of the Bankruptcy Abuse Prevention & Consumer Protection Act of 2005, most of which takes effect in October 2005. Under the provisions of the new law, counsel’s signature on a petition constitutes a certification that the attorney has no knowledge, after an inquiry, that the information in the schedules filed with the petition is incorrect. 11 U.S.C. §707(b)(4)(D). Attorneys may be subject to assessment of a civil penalty for signing a document without conducting a reasonable inquiry into the underlying facts. §707(b)(4)(B).</span></li>
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<br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Flint Bankruptcy Court is located downtown.</span><br /><a href="http://goodmorningflint.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://goodmorningflint.blogspot.com</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<ol>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">BANKRUPTCY FACTOID-</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Gutierrez</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 356 B.R. 496 (Bankr. N.D. Cal. 2006) (attorney violated provision of the BAPCPA by failing, within three days after meeting with debtor-client to discuss possibility of filing bankruptcy petition, to provide debtor-client with Bankruptcy Truthfulness Notice.” Accordingly, disgorgement of fees was ordered.)</span></li>
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<br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">You may not find free attorney. But a good office will provide you with information to help you decide on Bankruptcy.</span><br /><a href="http://occupyflintlegal.wordpress.com/"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://occupyflintlegal.wordpress.com</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<ol>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">BANKRUPTCY FACTOID-</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Gordon</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 2008 WL 2901583 at *3 (Bankr. D. Md. 2008) (The debtor’s attorney has a duty “that the [debtor’s] papers were to the best of Counsel’s knowledge, information and belief formed after an inquiry reasonable under the circumstances.”).</span></li>
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<br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Terry Bankert is one of the bankruptcy lawyers in Flint Michigan</span><br /><a href="http://yoursocialmediasolution.com/"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://yoursocialmediasolution.com</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
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<li style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">BANKRUPTCY FACTOID-</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Barrows</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 399 B.R. 506 (Bankr. D. Minn. 2009), </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">aff’d, Barrows v. Christians (In re Barrows)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 408 B.R. 239 (B.A.P. 8th Cir. 2009) (Trustee objected to debtors’ claim of exemption for money in checking account. Although the debtors knew they had $13,900 in the account they scheduled only $325. The court held the debtors acted in bad faith when they knowingly understated their accounts. The omissions were false and material and bar the exemption of the funds. The court found that neither the debtors nor their attorney made any attempt to ensure the schedules were accurate. Debtors bear an independent duty to provide accurate and complete information whether or not they have been assisted by counsel in preparing schedules. However, the court went on to find that the debtors’ attorney clearly contributed to the problem and could have avoided it. The attorney failed to ask the debtors questions that would have elicited the correct information, failed to verify the account balances and failed to stress the need to disclose changes to their financial situation. The attorney also allowed weeks to pass before filing. The attorney should have asked but ultimately the responsibility to be accurate falls on the debtors. )</span></li>
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<br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">If you have additional questions please call 235-1970 or contact through </span><a href="http://attorneybankert.com/"><span style="background-color: transparent; color: #1155cc; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://attorneybankert.com</span></a><br />
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<a href="http://goodmorningflint.blogspot.com/">http://goodmorningflint.blogspot.com/</a></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3826365535436401382.post-61041289802979945332011-12-28T12:07:00.000-08:002011-12-28T12:07:00.587-08:00Chapter 7 Bankruptcy in Divorce 235-1970<div dir="ltr" style="text-align: left;" trbidi="on">
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How the the court decides to Dismiss or Convert your chapter seven.</div>
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<span class="contbody" style="font-size: 14px;"><noindex><b>DID YOU KNOW</b><span class="Apple-converted-space"> </span></noindex> <span class="Apple-converted-space"> </span><a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000707----000-.html" style="color: #002c77; font-size: 14px;" target="ICLE">11 USC 707</a><span class="Apple-converted-space"> </span>authorizes the dismissal or conversion of a Chapter 7 case under certain circumstances. </span></div>
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<span class="contbody" style="font-size: 14px;"><span id="internal-source-marker_0.5289669231364186" style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">Posted here by Flint Bankruptcy Attorney Terry Bankert 235-1970. See </span><a href="http://www.attorneybankert.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">Http://www.attorneybankert.com</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">YOU MUST FILE YOUR DOCUMENTS</span></span></div>
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<span class="contbody" style="font-size: 14px;">In general, a case may be dismissed or converted for cause under<span class="Apple-converted-space"> </span><a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000707----000-.html" style="color: #002c77; font-size: 14px;" target="ICLE">11 USC 707(a)</a>, which may include failure to file documents in a timely manner, undue delay that is prejudicial to creditors, failure to pay statutory fees, or for abuse.<span class="Apple-converted-space"> </span><i>See<span class="Apple-converted-space"> </span></i><i>In re Zick</i>, 931 F2d 1124 (6th Cir 1991). </span></div>
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<span class="contbody" style="font-size: 14px;">IF YOU ABUSE THE SYSTEM YOUR BANKRUPTCY COULD BE DISMISSED.</span></div>
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<span class="contbody" style="font-size: 14px;">The court may also dismiss a bankruptcy case under<span class="Apple-converted-space"> </span><a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000707----000-.html" style="color: #002c77; font-size: 14px;" target="ICLE">11 USC 707(b)</a><span class="Apple-converted-space"> </span>if the case would be “an abuse of the provisions” of Chapter 7 and if the debtor’s obligations are primarily consumer debts.</span></div>
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<span class="contbody" style="font-size: 14px;">THE BANKRUPTCY COURTY WILL TEST TO SEE IF YOU HAVE THE MEANS TO PAY YOURS BILLS.</span></div>
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<span class="contbody" style="font-size: 14px;">The Bankruptcy Code contains an elaborate formula to determine whether a case is presumptively abusive, brought in by the Bankruptcy Reform Act of 2005, called the<span class="Apple-converted-space"> </span><i>means test.<span class="Apple-converted-space"> </span></i><a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000707----000-.html" style="color: #002c77; font-size: 14px;" target="ICLE">11 USC 707(b)</a>. The test is applied only if the debtor’s<span class="Apple-converted-space"> </span><i>current monthly income,<span class="Apple-converted-space"> </span></i>as defined in<span class="Apple-converted-space"> </span><a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000101----000-.html" style="color: #002c77; font-size: 14px;" target="ICLE">11 USC 101</a>, is above the safe harbor provision set forth in<span class="Apple-converted-space"> </span><a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000707----000-.html" style="color: #002c77; font-size: 14px;" target="ICLE">11 USC 707(b)(7)</a>.</span></div>
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<span class="contbody" style="font-size: 14px;">USING THEIR FORMULA IF YOUR NET INCOME IS TOO HIGH THE COURT WILL PRESUME YOUR FILING IS AN ABUSE OF DISCRETION.</span></div>
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<span class="contbody" style="font-size: 14px;"> If it is, the debtor must perform a complicated set of calculations to determine whether the debtor’s income, minus certain standardized expense deductions, is above a certain threshold. If so, the case is presumed to be an abuse.</span></div>
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<span class="contbody" style="font-size: 14px;">THE BANKRUPTCY TRUSTEE IS LOOKING TO MAKE SURE YOUR NET INCOME IS BELOW THE MEDIAN AMOUNT FOR A FAMILY YOUR SIZE.</span></div>
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<span class="contbody" style="font-size: 14px;"> However, if the debtor’s income is less than the median income for a family the size of the debtor’s, the debtor meets the safe harbor provision and does not need to perform the means test calculations. Similarly, if the debtor’s debts are primarily business debts, the debtor need not perform the means test calculations. </span></div>
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<span class="contbody" style="font-size: 14px;">HIGH INCOME WILL FORCE YOU FROM CHAPTER 7 INTO CHAPTER 13 </span></div>
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<span class="contbody" style="font-size: 14px;">This test is designed to keep filers with higher incomes from filing Chapter 7 and instead force them into Chapter 13. The idea was to restrict access to Chapter 7 liquidations to those who are truly unable to pay their debts and to require people who have the ability to repay their debts to do so.</span></div>
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<span class="contbody" style="font-size: 14px;"><a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000707----000-.html" style="color: #002c77; font-size: 14px;" target="ICLE">11 USC 707(b)(3)</a><span class="Apple-converted-space"> </span>may be used to dismiss a case even if a debtor is found to be eligible for relief under<span class="Apple-converted-space"> </span><a class="contbody" href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000707----000-.html" style="color: #002c77; font-size: 14px;" target="ICLE">11 USC 707(b)(2)</a>—the means test. In essence, if the court believes that it would be an abuse of the Bankruptcy Code to grant the debtor relief under Chapter 7, it may deny such relief under this provision.</span></div>
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<span class="contbody" style="font-size: 14px;"><br id="internal-source-marker_0.5289669231364186" /><span style="background-color: #e5e5e5; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;">Michigan Family Law ch 17 (Hon. Marilyn J. Kelly et al eds, ICLE 7th ed 2011), at</span><br /><span style="background-color: #e5e5e5; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> </span><a href="http://www.icle.org/modules/books/chapter.aspx/?lib=family&book=2011553510&chapter=17"><span style="background-color: #e5e5e5; color: #000099; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline;">http://www.icle.org/modules/books/chapter.aspx/?lib=family&book=2011553510&chapter=17</span></a><span style="background-color: #e5e5e5; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: #e5e5e5; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"> (last updated 12/16/2011).</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 15px; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline;"></span></span></div>
<br class="Apple-interchange-newline" /></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3826365535436401382.post-59093359764610714722011-11-15T14:20:00.001-08:002011-11-15T14:21:27.700-08:00FLINT BANKRUPTCY CREDITOR OBJECTION JUDGES OPINION, 810-235-1970<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="font-family: TimesNewRomanPSMT;"></span><b><span style="font-family: TimesNewRomanPS-BoldMT;"><div align="left">
OPINION SUSTAINING CREDITOR’S OBJECTION TO CONFIRMATION</div>
</span><span style="font-family: TimesNewRomanPSMT;"><div align="left">
The matter before the Court is Evangelical Christian Credit Union’s Objection to</div>
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Debtor’s Second Amended Combined Plan and Disclosure Statement (Docket No. 66). For the</div>
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indicated reasons, the Creditor’s Objection is sustained.</div>
</span><b><span style="font-family: TimesNewRomanPS-BoldMT;"><div align="left">
I. BACKGROUND</div>
</span><span style="font-family: TimesNewRomanPSMT;"><div align="left">
Christian Love Fellowship Ministries, International (“Debtor”) filed its Chapter 11</div>
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bankruptcy petition on November 12, 2010. On May 25, 2011, Debtor filed its Second Amended</div>
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Combined Plan and Disclosure Statement (Docket No. 61) and on May 27, 2011, the Court</div>
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entered an Order Granting Preliminary Approval (Docket No. 63) of such. On July 5, 2011,</div>
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Evangelical Christian Credit Union (“ECCU”) filed an Amended Objection to Debtor’s proposed</div>
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Plan (Docket No. 68). The Court held a confirmation hearing on July 7, 2011, at which it heard</div>
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that objection.</div>
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Debtor’s Plan is confirmable except for ECCU’s objection, which relates to its</div>
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classification in the Plan. ECCU holds mortgages on Debtor’s properties located at 1601</div>
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Stamford Road, Ypsilanti, Michigan and 3936 Palisades Boulevard, Ypsilanti, Michigan, with</div>
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reference to which it filed a secured proof of claim for $4,139,966.49. The secured portion of</div>
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ECCU’s debt is treated in the plan in a manner that payments thereon, slightly in excess of</div>
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accruing interest, would be paid monthly for five years, at which time the entire balance will</div>
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become due and payable – it being Debtor’s expectation that it will be able to refinance at that</div>
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time, notwithstanding the fact that the principal balance of the secured debt will be fairly close to</div>
</span><span style="font-family: TimesNewRomanPSMT; font-size: x-small;"><span style="font-family: TimesNewRomanPSMT; font-size: x-small;"><div align="left">
2</div>
</span></span><span style="font-family: TimesNewRomanPSMT;"><div align="left">
what it is today. The unsecured portion of ECCU’s claim, representing its deficiency claim, is</div>
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approximately $2,671,966.49.</div>
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Debtor’s Plan contemplates the availability of $250,000 to be paid to all unsecured</div>
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creditors over the five-year life of the plan. Debtor classified the unsecured creditors as follows:</div>
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(1) Class II – all unsecured creditors other than ECCU, and (2) Class III – the unsecured</div>
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deficiency claim of ECCU. As originally filed, Debtor’s Schedule F listed some 20 unsecured</div>
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creditors, most, if not all of which could be called trade creditors, whose claims total $73,462.28.</div>
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On Debtor’s Schedule F, included in that group of unsecured creditors was a single claim of JP</div>
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Morgan Chase Bank covering an unsecured line of credit of $42,400.59. The post claims filing</div>
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deadline claims register shows eight filed claims, two of which are the secured claim of ECCU</div>
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and a secured claim filed by JP Morgan Chase Bank, and the remaining six claims are unsecured</div>
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and are essentially those of trade creditors, such as a lawn service provider, phone systems, and a</div>
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pest control provider, totaling some $24,785.39 (and included in that amount is some $10,000</div>
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owed to one creditor and some $13,000 owed to another, both appearing to cover leased office</div>
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equipment). ECCU argues that it is improper for its claim to be separately classified in Class III</div>
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and that it should be classified along with the other unsecured claims in Class II, the result of</div>
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which would be that ECCU would likely receive a materially larger distribution over the life of</div>
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the plan. The issue is whether ECCU’s claim can be separately classified from the other</div>
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unsecured claims under 11 U.S.C. § 1122.</div>
</span><b><span style="font-family: TimesNewRomanPS-BoldMT;"><div align="left">
II. DISCUSSION</div>
</span><span style="font-family: TimesNewRomanPSMT;"><div align="left">
A plan of reorganization may be confirmed if all of the requirements of 11 U.S.C. §</div>
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1129(a) have been met. Section 1129(a)(8) requires that all impaired classes vote in favor of the</div>
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plan. That requirement can be avoided if a Debtor proposes confirmation under § 1129(b),</div>
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which imposes the same requirements as § 1129(a), except for (a)(8), but requires that the plan:</div>
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(1) “not discriminate unfairly”; and (2) be “fair and equitable, with respect to each class of</div>
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claims or interests that is impaired under, and has not accepted, the plan,” and further requires</div>
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that at least one impaired class vote in favor of the plan. In this case, Class II as proposed voted</div>
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in favor of the plan.</div>
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11 U.S.C. § 1122 provides:</div>
</span><span style="font-family: TimesNewRomanPSMT; font-size: x-small;"><span style="font-family: TimesNewRomanPSMT; font-size: x-small;"><div align="left">
3</div>
</span></span><span style="font-family: TimesNewRomanPSMT;"><div align="left">
(a) Except as provided in subsection (b) of this section, a plan may place a claim</div>
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or an interest in a particular class only if such claim or interest is substantially</div>
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similar to the other claims or interests of such class.</div>
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(b) A plan may designate a separate class of claims consisting only of every</div>
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unsecured claim that is less than or reduced to an amount that the court approves</div>
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as reasonable and necessary for administrative convenience.</div>
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The parties do not disagree with the proposition that “[i]n classifying claims, the general rules</div>
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are that ‘[d]issimilar claims may not be classified together; [and] similar claims may be</div>
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separately classified only for a legitimate reason.” </div>
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(Bankr. E.D. Mich. 2009) (quoting </div>
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“The proponent of the plan must demonstrate a justification for its classification scheme and that</div>
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the classification is not motivated by the purpose of gerrymandering an affirmative vote of an</div>
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impaired class.” </div>
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warrant having a separate classification of similar claims, the debtor must advance a legitimate</div>
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reason supported by credible proof.” </div>
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Debtor argues that its proposed separate classification is justified because Class II</div>
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consists of all of its trade creditors with which, during the course the plan period and thereafter,</div>
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it expects to continue to do business. Therefore, to justify a separate classification, it argues that</div>
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those claims are of a sufficiently different nature or character than ECCU’s deficiency claim.</div>
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To appreciate the practical ramifications of the issue in this case, it is noted that, based on</div>
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originally scheduled claims (1) Class II would consist of scheduled potential claims amounting</div>
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to some $73,462.28, one half of which ($36,731.14) would be paid in sixty equal monthly</div>
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payments; and (2) the Class III deficiency claim held by ECCU of some $2,671,966.49 would</div>
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receive a 5% payment, totaling $133,598.32, which would be paid in twenty equal quarterly</div>
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payments. Debtors have indicated that there is a total of $250,000 for distribution to unsecured</div>
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creditors. A calculation of the distribution to Class II and Class III under the express terms of</div>
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the proposed plan, based on the scheduled claims, would leave an additional $79,670.54 (out of</div>
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the total distribution of $250,000) to be distributed to unsecured creditors. It is clear that, at the</div>
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time the proposed plan was drafted, Debtor anticipated a higher total of general unsecured debt</div>
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in Class II. If those two classes were combined, based on the scheduled claims, the total amount</div>
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of claims would be $2,745,428.80, of which ECCU’S portion would be about 97%. That percent</div>
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of the available $250,000 would be approximately $242,500, which is substantially more (some</div>
</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">In re Griswold Bldg., LLC</span><span style="font-family: TimesNewRomanPSMT;">, 420 B.R. 666, 707</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">In re Chateaugay Corp.</span><span style="font-family: TimesNewRomanPSMT;">, 89 F.3d 942, 949 (2nd Cir. 1996).</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">Id</span><span style="font-family: TimesNewRomanPSMT;">. (quoting </span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">In re Porcelli</span><span style="font-family: TimesNewRomanPSMT;">, 319 B.R. 8, 10 (Bankr. M.D. Fla. 2004). “[T]o</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">Id</span><span style="font-family: TimesNewRomanPSMT;">. (quoting </span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">In re Chateaugay Corp</span><span style="font-family: TimesNewRomanPSMT;">., 89 F.3d at 949).</span><span style="font-family: TimesNewRomanPSMT; font-size: x-small;"><span style="font-family: TimesNewRomanPSMT; font-size: x-small;"> <div align="left">
4</div>
</span></span><span style="font-family: TimesNewRomanPSMT;"><div align="left">
$108,901.68) than what ECCU would receive as a member of Class III under Debtor’s proposed</div>
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Plan. The remaining 3% of the available $250,000, totaling approximately $7,500, would go to</div>
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the other members of that class, and that is a sharp decrease from what they would receive as a</div>
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member of Class II under the Debtor’s proposed Plan.</div>
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To further fully appreciate the potential ramifications based on actually filed claims</div>
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opposed to originally scheduled claims): Class II would consist of actually filed unsecured</div>
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claims amounting to $24,785.39, one half of which ($12,392.70) would be paid in sixty equal</div>
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monthly payments; and (2) as noted, the Class III deficiency claim held by ECCU of some</div>
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$2,671,966.49 would receive a 5% payment, totaling $133,598.32, which would be paid in</div>
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twenty equal quarterly payments. A calculation of the distribution to Class II and Class III under</div>
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the express terms of the proposed plan, based on the filed claims, would leave an additional</div>
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$104,008.98 (out of the total distribution of $250,000) to be distributed to unsecured creditors.</div>
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As already noted above, it is clear that, at the time the proposed plan was drafted, Debtor</div>
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anticipated a higher total of general unsecured debt in Class II.</div>
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combined, based on the filed claims, the total amount of claims would be $2,696,751.90, of</div>
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which ECCU’S portion would be about 99%. That percent of the available $250,000 would be</div>
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approximately $247,500, which is substantially more (some $113,901.68) than what ECCU</div>
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would receive as a member of Class III under Debtor’s proposed Plan. The remaining 1% of the</div>
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available $250,000, totaling approximately $2,500, would go to the other members of that class,</div>
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and that is a sharp decrease from what they would receive as a member of Class II under the</div>
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Debtor’s proposed Plan.</div>
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As this Court views the unsecured claims classification law in this circuit, it is that (a)</div>
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section 1122(a) does not demand that all similar claims be in the same class; (b) the bankruptcy</div>
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court has substantial discretion to place similar claims in different classes if there is a reason to</div>
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do so; and (c) where it appears that the classification sought is primarily to create a class of</div>
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consenting creditors to be able to assure acceptance and confirmation, separate classification is</div>
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impermissible. </div>
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Co. (In re U.S. Truck Co.)</div>
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F.3d 648 (6th Cir. 2002). One commenter has stated that:</div>
</span><span style="font-family: TimesNewRomanPSMT; font-size: xx-small;"><span style="font-family: TimesNewRomanPSMT; font-size: xx-small;">1 </span></span><span style="font-family: TimesNewRomanPSMT;">(as</span><span style="font-family: TimesNewRomanPSMT; font-size: xx-small;"><span style="font-family: TimesNewRomanPSMT; font-size: xx-small;">2 </span></span><span style="font-family: TimesNewRomanPSMT;">If those two classes were</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">See Teamsters National Freight Industry Negotiating Committee v. U.S. Truck</span><span style="font-family: TimesNewRomanPSMT;">, 800 F.2d 581, 586 (6th Cir. 1986); </span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">In re Dow Corning Corp.</span><span style="font-family: TimesNewRomanPSMT;">, 280</span><span style="font-family: TimesNewRomanPSMT; font-size: xx-small;"><span style="font-family: TimesNewRomanPSMT; font-size: xx-small;"> <div align="left">
1 </div>
</span></span><span style="font-family: TimesNewRomanPSMT; font-size: x-small;"><span style="font-family: TimesNewRomanPSMT; font-size: x-small;">The claims bar date has passed.</span></span><span style="font-family: TimesNewRomanPSMT; font-size: xx-small;"><span style="font-family: TimesNewRomanPSMT; font-size: xx-small;"> <div align="left">
2 </div>
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5</div>
</span></span><span style="font-family: TimesNewRomanPSMT; font-size: x-small;"><span style="font-family: TimesNewRomanPSMT; font-size: x-small;">It is clear that these plan provisions would need to be amended to account for these differences.</span></span><span style="font-family: TimesNewRomanPSMT;"> <div align="left">
the clear trend in the courts of appeals is that the unsecured mortgage deficiency</div>
<div align="left">
claims of an undersecured mortgage lender cannot be classified separately from</div>
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unsecured trade creditors’ claims when the sole purpose for the separate</div>
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classification is to manipulate class voting and to create an impaired class of</div>
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unsecured claims willing to accept a proposed plan. These courts have held that</div>
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the mere fact that some claims arise as a result of undersecured portions of claims</div>
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does not distinguish such undersecured claims from other unsecured claims so as</div>
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to justify separate classification.</div>
<div align="left">
6 Norton Bankruptcy Law and Practice 3d § 109.4 (citations omitted). In the noted </div>
</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">U.S. Truck</span><span style="font-family: TimesNewRomanPSMT;"> <div align="left">
case, the separate classification of a claim arising out of a collective bargaining agreement and</div>
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the debtor’s relationship with the union involved was justified because of the “virtually unique”</div>
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interest of the union employees in their ongoing relationship with the debtor and continuing</div>
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collective bargaining process. </div>
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anticipated ongoing relationship with its indicated trade creditors over the life of the plan is</div>
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likewise to be distinguished from its relationship to ECCU, justifying a different claim treatment</div>
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and consequent separate classification.</div>
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This Court disagrees for a number of reasons. First, there are trade creditors in most</div>
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Chapter 11 cases and in many, if not most, of those same cases there are also undersecured</div>
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claims giving rise to deficiency claims. If the separate classification were to be upheld in this</div>
<div align="left">
case, it would be the rare case where it would not be. Second, the facts with regard to the small</div>
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number and identity and type of the unsecured creditors and the amounts of their claims lend</div>
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credence to the argument that the proposed classification in this case is primarily for the purpose</div>
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of obtaining a consenting class which approves the proposed plan. Third, with respect to the</div>
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ECCU deficiency claim and the claims of the other unsecured creditors, there is little to</div>
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differentiate them other than by their source or how they arose, and there are not the kind of</div>
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“unique” differences as, for instance, justified the separate classification in the </div>
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It appears to be the case that the Debtor’s rationale for the difference is the potential of a</div>
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continuing relationship with the other unsecured creditors over the life of the plan. In this case,</div>
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Debtor has also built a continuing relationship with ECCU, one that the plan proposes will</div>
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continue for the life of the plan. If it wants to, Debtor can continue to do business with the small</div>
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number of other unsecured creditors, whose services are not unique and are readily available in</div>
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the market place, and, if the service providers want to continue to do business with the Debtor</div>
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(neither of which is required), they free to continue or discontinue any ongoing relationship</div>
</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">U.S. Truck</span><span style="font-family: TimesNewRomanPSMT;">, 800 F.2d at 586. In this case, Debtor argues that its</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">U.S. Truck </span><span style="font-family: TimesNewRomanPSMT;">case.</span><span style="font-family: TimesNewRomanPSMT; font-size: x-small;"><span style="font-family: TimesNewRomanPSMT; font-size: x-small;"> <div align="left">
6</div>
</span></span><span style="font-family: TimesNewRomanPSMT;"><div align="left">
(unlike the continuing essentially mandated collective bargaining agreement relationship in </div>
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Truck</div>
<div align="left">
normal course of post-confirmation business and during the life of the plan militates against the</div>
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Debtor’s argument in this case, which would afford to the more certain continuing relationship</div>
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an inferior result. In any event, the differences, if any, between ECCU’s deficiency claim and</div>
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the other unsecured creditor’s claims, do not sufficiently justify either overcoming the</div>
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gerrymandering purpose (evident from the indicated claims analysis and other facts) in this case,</div>
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or the conclusion that whatever differences one can articulate are of insufficient substance and</div>
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materiality to justify distinguishing between them requiring or permitting dissimilar treatment.</div>
</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">U.S.</span><span style="font-family: TimesNewRomanPSMT;">). Indeed, the fact that some or all of those relationships may or could easily end during the</span><b><span style="font-family: TimesNewRomanPS-BoldMT;"> <div align="left">
III. CONCLUSION</div>
</span><span style="font-family: TimesNewRomanPSMT;"><div align="left">
For those reasons, the Court concludes that ECCU’s objection to confirmation of</div>
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Debtor’s Second Amended Combined Plan must be sustained. In view of this result, a status</div>
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conference on the future of this case will be held on November 30, 2011 at 9:45 a.m.</div>
</span><b><span style="font-family: CourierNewPS-BoldMT; font-size: xx-small;"><span style="font-family: CourierNewPS-BoldMT; font-size: xx-small;"><div align="left">
.</div>
</span></span><span style="font-family: CourierNewPS-BoldMT; font-size: x-small;"><span style="font-family: CourierNewPS-BoldMT; font-size: x-small;">Signed on November 09, 2011</span></span></b></b></i></i></i></i></i></i></i></i></i></i></i></i></b></b></b> <br />
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UNITED STATES BANKRUPTCY COURT</div>
<div align="left">
EASTERN DISTRICT OF MICHIGAN</div>
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SOUTHERN DIVISION – DETROIT</div>
<div align="left">
In re:</div>
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Case No. 10-74467</div>
<div align="left">
Christian Love Fellowship Chapter 11</div>
<div align="left">
Ministries, International, Hon. Walter Shapero</div>
<div align="left">
Debtor.</div>
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____________________________________/</div>
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3826365535436401382.post-72305710140495363682011-11-07T01:20:00.000-08:002011-11-07T01:22:05.864-08:00IS CIVIL DISOBEDIENCE INEVITABLY?<div dir="ltr" style="text-align: left;" trbidi="on">
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<div style="background-color: transparent;">
<span id="internal-source-marker_0.4207907042000443" style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Terry Bankert of “OCCUPY FLINT”11/7/11</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></div>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Civil disobedience inevitable in the Occupy FLINT Movement? Yes! What do you think?</span></div>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">FYI the following.</span></div>
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
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<span style="background-color: white; color: black; font-family: Arial; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Civil disobedience</span><span style="background-color: white; color: black; font-family: Arial; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> is the active, professed refusal to obey certain laws, demands, and commands of a government, or of an occupying international power. Civil disobedience is commonly, though not always,</span><a href="http://en.wikipedia.org/wiki/Civil_disobedience#cite_note-0"><span style="background-color: white; color: #0645ad; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[1]</span></a><a href="http://en.wikipedia.org/wiki/Civil_disobedience#cite_note-1"><span style="background-color: white; color: #0645ad; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[2]</span></a><span style="background-color: white; color: black; font-family: Arial; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> defined as being </span><a href="http://en.wikipedia.org/wiki/Nonviolent_resistance"><span style="background-color: white; color: #0645ad; font-family: Arial; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">nonviolent resistance</span></a><span style="background-color: white; color: black; font-family: Arial; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. It is one form of </span><a href="http://en.wikipedia.org/wiki/Civil_resistance"><span style="background-color: white; color: #0645ad; font-family: Arial; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">civil resistance</span></a><span style="background-color: white; color: black; font-family: Arial; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. In one view (in India, known as</span><a href="http://en.wikipedia.org/wiki/Ahimsa"><span style="background-color: white; color: #0645ad; font-family: Arial; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">ahimsa</span></a><span style="background-color: white; color: black; font-family: Arial; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> or </span><a href="http://en.wikipedia.org/wiki/Satyagraha"><span style="background-color: white; color: #0645ad; font-family: Arial; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">satyagraha</span></a><span style="background-color: white; color: black; font-family: Arial; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">) it could be said that it is </span><a href="http://en.wikipedia.org/wiki/Compassion"><span style="background-color: white; color: #0645ad; font-family: Arial; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">compassion</span></a><span style="background-color: white; color: black; font-family: Arial; font-size: 10pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> in the form of respectful disagreement.</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<a href="http://en.wikipedia.org/wiki/Civil_disobedience"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://en.wikipedia.org/wiki/Civil_disobedience</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">OCCUPY MOVEMENT CAN WIN WITH NON VIOLENCE</span><br />
<span style="background-color: transparent; color: #5c5c5c; font-family: Georgia; font-size: 9pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: #444444; font-family: Georgia; font-size: 13pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Any effort by a tiny minority to break the unity of action of our movement must be repelled. Anything short of strict nonviolence will play into the hands of the right-wingers in the police department, and into the hands of Wall Street.</span><br />
<span style="background-color: transparent; color: #444444; font-family: Georgia; font-size: 13pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">There is nothing Wall Street and right-wingers at all levels of government would love more than to have today's public anger against them turn into its very opposite.</span><br />
<span style="background-color: transparent; color: #444444; font-family: Georgia; font-size: 13pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: #444444; font-family: Georgia; font-size: 13pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">When engaging in civil disobedience, let's employ non-violent tactics that will galvanize broad unity with the people of Oakland and nation.</span><br />
<span style="background-color: transparent; color: #444444; font-family: Georgia; font-size: 13pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Tactics that will win over even misguided working people and students influenced by Fox television and other media outlets at the service of Wall Street and the far right.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<a href="http://peoplesworld.org/occupy-movement-can-win-with-nonviolence/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://peoplesworld.org/occupy-movement-can-win-with-nonviolence/</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Atlanta (CNN)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> -- Occupy protesters returned to the streets of Atlanta on Sunday night, a day after a police crackdown on a gathering organized by the movement resulted in the arrests of 19 people....Those arrested Saturday included two people who refused to leave Woodruff Park after the 11 p.m. closing time and 17 others charged with obstructing traffic after the crowd poured onto nearby streets, the Atlanta Police Department said</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">…..The group may change gears and use other ways to convere no people protesting, if banks start failing again because of Greece, they will come back to the government for a bailout. The government needs to know people are watching.".....New York has made 555 arrests in the Occupy Wall Street movement on charges ranging from minor vioy its message, including "occupying" banking facilities and homes facing foreclosure, according to Chidi.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">….."The financial services industry is not being properly regulated or overseen," said the 38-year-old consultant. "We are cruising toward another 2008 meltdown."</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">And the protests will send a strong message, he said.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">"We have not learned a lesson from the last catastrophe. If there alations to felonies, the district attorney's office said. New York City Police said last week they charged a 26-year-old Brooklyn man with sexual abuse for inappropriately touching an 18-year-old woman at Zuccotti Park, the home base for the protests. In Oakland, California, demonstrators and police clashed last week, prompting authorities to use tear gas on protesters who defied orders to disperse.</span><br />
<a href="http://www.cnn.com/2011/11/06/us/georgia-occupy-arrests/?hpt=us_c2"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://www.cnn.com/2011/11/06/us/georgia-occupy-arrests/?hpt=us_c2</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">ATLANTA -Atlanta police said one protester draped in an American flag inside Woodruff Park was arrested after refusing to leave by a Sunday night curfew, and four other people on bicycles were arrested near the park - three for traffic violations and one for obstruction of a law enforcement officer.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<a href="http://www.nydailynews.com/news/national/lone-atlanta-occupy-wall-street-protester-arrested-refusing-leave-park-article-1.973253"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://www.nydailynews.com/news/national/lone-atlanta-occupy-wall-street-protester-arrested-refusing-leave-park-article-1.973253</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">HPD arresting Occupy Honolulu Protestors from sidewalk. Beretania Street</span><br />
<a href="http://www.youtube.com/watch?v=wSM86ZkQI8Q"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://www.youtube.com/watch?v=wSM86ZkQI8Q</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Nov 6, 2011 by</span><a href="http://www.youtube.com/user/Euronews"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Euronews</span></a><br />
<a href="http://www.euronews.net/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://www.euronews.net/</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> At least 20 people have been arrested after scuffles broke out during an Occupy Wall Street protest in New York.</span><br />
<a href="http://www.youtube.com/watch?v=SZvvcpmxNSM"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://www.youtube.com/watch?v=SZvvcpmxNSM</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">DISTRICT OF COLUMBIA</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Police and Occupy DC protesters are offering conflicting accounts about a weekend incident in which a motorist struck three protesters near a downtown demonstration.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">....</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">HAWAII</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Police arrested roughly a half dozen protesters after organizers of the Occupy Honolulu movement attempted to establish an encampment at a local park.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Some 20 police officers arrived late Saturday at the city’s Thomas Square. Members of Occupy Honolulu had said earlier Saturday that they planned to begin camping at the park starting at its 10 p.m. closing time. About 40 protesters were gathered at the site when authorities began telling them to leave.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">…..Honolulu organizers said they also stood “in solidarity” with the homeless who are being forced from the streets and parks as the city prepares this week to host the Asia-Pacific Economic Cooperation.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">OREGON</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Portland Police Bureau chief Mike Reese has told members of Occupy Portland that concerns about their security in camp and on marches are warranted, but says protesters must work more closely with police......</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">OHIO</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Occupy Wall Street movement has spurred demonstrators in Cincinnati to form their own political party.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Spokesman Tyrone Givens tells The Associated Press that he and other Cincinnati-based protesters traveled to New York’s Occupy site to pitch the idea. He says the party is vetting six potential candidates for local office from Ohio, New York and Kentucky.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Givens says the ultimate goal is to elect members of the “Occupation Party” to Congress.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">CALIFORNIA</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Several hundred protesters marched through the financial district in Los Angeles to protest the banking industry as part of “Bank Transfer Day,” a grassroots movement that has been championed by the Occupy Wall Street protests.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">…..The march ended with a teach-in by former labor secretary Robert Reich.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Meanwhile, a downtown Oakland branch of Wells Fargo bank closed its doors for the day Saturday as immigrant rights protesters crowded the entrance to condemn the bank’s ties to private companies that run immigrant detention centers.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">More than 100 protesters marched a block from the Occupy Oakland encampment to the bank branch Saturday morning. A few protesters briefly tussled with bank security guards who stood in front of the locked entrance. Police were on the scene but made no arrests.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">INDIANA</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Dozens of anti-Wall Street protesters marched Saturday through downtown Indianapolis, chanting slogans and holding signs berating the nation’s big banks after a rally where they urged people to transfer their money to local banks and credit unions.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">About 80 protesters marched from the Indiana Statehouse to Monument Circle, where they stopped outside two banks and loudly chanted “This is democracy in action!” before continuing.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">IDAHO</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Fifteen campers set up tents Saturday at the Old Ada County Courthouse lawn in downtown Boise with some planning to stay for as long as they can.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Idaho Statesman reports that the protesters met with state officials earlier in the week and agreed to ground rules limiting the number of campers to 15 until more services are put in place.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">___</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">BRITAIN</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">About 200 protesters marched to Parliament on Guy Fawkes Day, the annual commemoration of the English revolutionary who tried to blow up the building in the 17th century.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Many of Saturday’s protesters in London were wearing a grinning, somewhat sinister mask of Guy Fawkes that has become an icon of the Occupy Movement around the world. The rally was largely peaceful, but the group was kept from getting close to Parliament by a heavy police presence.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">…..Many of the demonstrators had marched from St. Paul’s Cathedral in London, where the Occupy movement has set up camp for weeks to protest social inequality and the excesses of the banking industry. Two protesters were arrested for suspected criminal damage and unlawful protest, police said.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<a href="http://www.washingtonpost.com/national/latest-developments-in-the-occupy-protests-occurring-in-places-around-the-world/2011/11/06/gIQA73ujrM_story.html"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://www.washingtonpost.com/national/latest-developments-in-the-occupy-protests-occurring-in-places-around-the-world/2011/11/06/gIQA73ujrM_story.html</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span></div>
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3826365535436401382.post-80847516085684601632011-11-06T09:27:00.001-08:002011-11-06T09:41:55.400-08:00BANKRUPTCY YOUR PERSONAL BAILOUT.What do you keep?<div dir="ltr" style="text-align: left;" trbidi="on">
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<span id="internal-source-marker_0.8836160129867494" style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">WHAT IS BANKRUPTCY ? WHAT HAPPENS TO YOUR PROPERTY?</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In your Chapter Seven Bankruptcy most credit card, medical, and legal debts are discharged. Also eliminated are most court judgements and loans.</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Presented by Flint Bankruptcy Attorney Terry Bankert 810-235-1970 , Contact Bankruptcy Lawyer Bankert at </span><a href="http://www.attorneybankert.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">www.attorneybankert.com</span></a><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Some of your debt cannot be discharged like:</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[1] debts to pay non discharge-able taxes ,</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[2] court imposed fines and resitutions to include driver responsibility fines,</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[3] back child support and alimony,</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[4] debts owed to an ex spouse a a result of a divorce or separation, </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[5] loans owed to a retirement plan such as a 401 (k) (because you are the creditor as well as the debtor in this situation. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[6] student loans ( unless you can show that repaying the loans would be an undue hardship.) </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[7] federal and state taxes that were first due less that three years before you filed your bankruptcy. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[8] Debt for personal injuries or death resulting from your drunk driving.</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Specific debts will survive your bankruptcy if the creditor seeks an order from the court to exclude it. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">These excluded would be debts arising from your fraudulent actions, recent credit card transactions for luxery items, and willful and malicious actions causing personal injury or property damage. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Most of your property except pension and retirement plans becomes part of your bankruptcy estate when you file.</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">This is property you own or are entitled to own. The bad news is this include property you tried to protect by selling to family or friends for a reduced rate in the last two years. This includes certain types of property you have come to dis own within 6 months before you filed. This is also true of marital property even if only one spouse files. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">When you go to your “ Meeting” the bankruptcy trustee is looking for property when sold will generate a profit to pay the trustee and your creditors. If you owe more on your car or house than it is worth the trustee will not be interested in it. </span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Yes you can keep your car and house if:</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[1] you are current on the mortgage or auto loan.</span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">[2] You have no significant equity in the house or car.</span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
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<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">To keep after bankruptcy you must sign an affirmation agreement. You effectively remove them from the bankruptcy and say you will pay the balance. If your bankruptcy is completed with a discharge of debt you cannot file again for bankruptcy for 8 years. </span><br />
<br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">For additional information contact Terry Bankert 810-235-1970. </span><a href="mailto:terry@attorneybankert.com"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">terry@attorneybankert.com</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, </span><a href="http://www.attorneybankert.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://www.attorneybankert.com</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> .</span></div>
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3826365535436401382.post-43035226680766702352011-10-16T08:28:00.000-07:002011-10-16T08:28:22.473-07:00BANKRUPTCY 235-1970<div dir="ltr" style="text-align: left;" trbidi="on">
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Need a Flint Bankruptcy, call Terry Bankert 810-235-1970<br id="internal-source-marker_0.0988345064688474" /><span id="internal-source-marker_0.0988345064688474" style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">2. Core Proceedings</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.7</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Bankruptcy judges may hear and decide all core proceedings and may enter orders and judgments in those proceedings subject to appellate review.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000157----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 157(b)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Examples of core proceedings are listed in</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000157----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 157(b)(2)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> and include (1) motions to lift the automatic stay, (2) actions to recover fraudulent conveyances and preferences, and (3) determinations whether certain debts are dischargeable. Also included on the list are “other proceedings affecting the liquidation of the assets of the estate or the adjustment of the debtor-creditor or the equity security holder relationship.”</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000157----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 157(b)(2)(O)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. For decisions construing the scope of core proceedings, see </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Pioneer Inv Servs Co</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 946 F2d 445 (6th Cir 1991); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Bliss Techs, Inc v HMI Indus (In re Bliss Techs, Inc)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 307 BR 598 (ED Mich 2004); and </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Marshall</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 118 BR 954 (WD Mich 1990).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Flint Genesee MI Attorney / Lawyer practicing in Family Law, Divorce, Bankruptcy. 810-235-1970</span><br /><a href="http://attorneybankert.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://attorneybankert.com</span></a><br /><a href="http://attorneybankert.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><a href="http://attorneybankert.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Stern v Marshall</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, ___ US ___, 131 S Ct 2594 (2011), the U.S. Supreme Court ruled that</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000157----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 157(b)(2)(C)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, which provides for state law counterclaims by the bankruptcy estate against persons filing claims against the estate, is unconstitutional with respect to a state law counterclaim that is not resolved in the process of ruling on a creditor’s proof of claim because non–Article III bankruptcy judges do not have the power to make final judgments on such claims. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Stern </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">calls into question the authority of bankruptcy courts to decide any state law claims and possibly even some core functions of the bankruptcy courts. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See also Meoli v Huntington Nat’l Bank (In re Teleservices Group, Inc)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, No HG 05-00690, 2011 Bankr LEXIS 3128 (Bankr WD Mich Aug 17, 2011) (analyzing impact of </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Stern</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Moses</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 225 BR 360 (ED Mich 1998), District Judge Gerald Rosen held that the bankruptcy court had subject-matter jurisdiction to determine the validity of a claim against a nondebtor corporation whose stock was held by a bankruptcy trustee. This proceeding was held to be “core” under</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000157----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 157(b)(2)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><br /><a href="http://attorneybankert.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><a href="http://attorneybankert.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><a href="http://attorneybankert.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Michigan , Flint Genesee, Lawyer / Attorney , Bankruptcy, 810-235-1970, Divorce and Family Law</span><br /><a href="http://terrybankert.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://terrybankert.blogspot.com</span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">3. Related Proceedings</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.8</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Noncore </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">or </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">related </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">proceedings are not defined in the Code. Nevertheless, Congress declared that a proceeding should not automatically be classified as related merely because “its resolution may be affected by State law.”</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000157----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 157(b)(3)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. For decisions addressing the nature of related proceedings, see </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Robinson v Michigan Consol Gas Co</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 918 F2d 579 (6th Cir 1990). </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See also Thelen v Cushion</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 156 BR 786 (Bankr WD Mich 1993); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Pal Nissan, Inc</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 126 BR 966 (Bankr WD Mich 1991).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">For decisions construing the broad scope of “related to” jurisdiction, see </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Celotex Corp v Edwards</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 514 US 300 (1995); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">BN1 Telecomms, Inc v Lomaz (In re BN1 Telecomms, Inc)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 246 BR 845 (6th Cir BAP 2000); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Lindsey v O’Brien, Tanski, Tanzer & Young Health Care Providers (In re Dow Corning Corp)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 86 F3d 482 (6th Cir 1996), </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">cert denied, </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">519 US 1071 (1997) (district court, sitting in bankruptcy, had related jurisdiction over breast implant claims asserted against nondebtors); and </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">8300 Newburgh Rd P’ship v Time Constr (In re Time Constr)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 43 F3d 1041 (6th Cir 1995).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><a href="http://terrybankert.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Flint Family Law and Bankruptcy Lawyer , Attorney Terry Bankert 810-235-1970,</span><a href="http://www.attorneybankert.com/"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://www.attorneybankert.com</span></a><br /><a href="http://www.attorneybankert.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">4. Practical Effect of the Distinction Between Core and Related Proceedings</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.9</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Although the distinctions made between core and related proceedings often vary with each bankruptcy judge, they are extremely important to the bankruptcy practitioner. First and foremost, if an action is classified as a core proceeding, the bankruptcy judge may enter final orders and judgments in that action, subject only to appellate review.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000157----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 157(b)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. In related proceedings, however, bankruptcy judges may only submit proposed findings of fact and conclusions of law to the district court, which then reviews the entire matter de novo and enters a final judgment or order.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000157----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 157(c)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Nevertheless, if the parties consent, this intermediate step may be eliminated and the bankruptcy judge may enter a final judgment in a related proceeding.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000157----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 157(c)(2)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">; </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">see DuVoisin v Foster (In re Southern Indus Banking Corp)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 809 F2d 329 (6th Cir 1987). The procedures for objecting to a bankruptcy judge’s proposed findings of fact and conclusions of law are set forth in</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9033"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9033</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See generally Boyd v Sachs</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 133 BR 384 (Bankr WD Mich 1991).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The bankruptcy judge, either on his or her own motion or on the timely motion of a party, determines in the first instance whether a particular matter should be classified as core or related.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000157----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 157(b)(3)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule7008"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 7008(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> requires all pleadings in adversary proceedings contain a statement that the proceeding is core or related. If it is related, the pleader must state that it does or does not consent to the entry of a final order or judgment by the bankruptcy judge.</span><br /><a href="http://www.attorneybankert.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy, 810-235-1970, Flint, Bay CIty, Saginaw, Owosso, and Burton. Genesee Flint Lawyer / Attorney also Family Law and Divorce</span><br /><a href="http://dumpmycreditors.wordpress.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://dumpmycreditors.wordpress.com</span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">5. Sovereign Immunity</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.10</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Section 106(a) of the Bankruptcy Code,</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000106----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 106(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, prescribes that a state governmental unit may waive its sovereign immunity guaranteed by the Eleventh Amendment to the U.S. Constitution with respect to certain sections of the Code, including</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000523----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 523</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, which governs dischargeability of debts. In </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Scarborough v State of Michigan Collection Div (In re Scarborough)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 229 BR 145 (Bankr WD Mich 1999), Bankruptcy Judge Jo Ann Stevenson ruled that Congress did not act pursuant to a valid exercise of power when it enacted this provision and, consequently, that the bankruptcy court lacked jurisdiction to determine the dischargeability of student loan debts.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In 2004, the U.S. Supreme Court expressly declined to decide whether a bankruptcy court’s exercise of personal jurisdiction over a state would be valid under the Eleventh Amendment. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Tennessee Student Assistance Corp v Hood</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 541 US 440 (2004). However, in a later decision the U.S. Supreme Court held that a proceeding initiated by a bankruptcy trustee to set aside preferential transfers by the debtor to state agencies was not barred by sovereign immunity:</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The relevant question is not whether Congress has “abrogated” States’ immunity in proceedings to recover preferential transfers. See</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000106----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 106(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. The question, rather, is whether Congress’ determination that States should be amenable to such proceedings is within the scope of its power to enact “Laws on the subject of Bankruptcies.” We think it beyond peradventure that it is.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Central Virginia Cmty Coll v Katz</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 546 US 356, 379 (2006).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Sovereign immunity may be waived by the consent of the governmental unit, such as by filing a proof of claim in a bankruptcy case when the cause of action asserted by the bankruptcy estate against the governmental unit relates to the unit’s claim against the estate.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000106----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 106(b)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">; </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">see also First Union Nat’l Bank v MCA Fin Corp (In re MCA Fin Corp)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 237 BR 338 (Bankr ED Mich 1999) (other grounds for consent).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><a href="http://dumpmycreditors.wordpress.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Flint Michigan, Terry Bankert 810-235-1970 Flint Lawyer Attorney practicing in Family Law and Bankruptcy</span><br /><a href="http://goodmorningflint.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://goodmorningflint.blogspot.com</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">C. Withdrawal of Cases and Proceedings</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">1. In General</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.11</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Although the jurisdictional provisions of the Bankruptcy Code and the local rules for both the Eastern and Western Districts of Michigan automatically refer all bankruptcy cases and proceedings to the bankruptcy judges, under certain circumstances a federal district court may withdraw the reference of a particular case or proceeding. The district court then proceeds to adjudicate the matter that has been withdrawn. This withdrawal is either permissive or mandatory.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000157----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 157(d)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">; </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">NLT Computer Servs Corp v Capital Computer Sys, Inc</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 755 F2d 1253 (6th Cir 1985).</span><br /><a href="http://goodmorningflint.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><a href="http://goodmorningflint.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><a href="http://goodmorningflint.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Flint DIvorce Family Law Attorney / Lawyer 810-235-1970</span><br /><a href="http://flintdivorce.wordpress.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://flintdivorce.wordpress.com</span></a><br /><a href="http://flintdivorce.wordpress.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">2. Permissive Withdrawal</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.12</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> The district court may, in its discretion, withdraw a bankruptcy case or proceeding.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000157----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 157(d)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. However, a party must demonstrate cause for withdrawal. What constitutes cause depends in part on the philosophy of the particular judge. Decisions that address this discretionary power of the district court include </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Gold v Dobday Mfg Co (In re Solar Stamping & Mfg, LLC)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, No 08-13433, 2008 US Dist LEXIS 68868 (ED Mich Sept 10, 2008); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Lucre, Inc v Verizon N, Inc</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, No 1:07-CV-120, 2007 US Dist LEXIS 36846 (WD Mich May 21, 2007); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Auto Specialties Mfg Co</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 134 BR 227 (WD Mich 1990); and </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Michigan Real Estate Ins Trust</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 87 BR 447 (ED Mich 1988).</span><br /><a href="http://flintdivorce.wordpress.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Divorce Lawyer in Flint Genesee MI 810-235-1970</span><br /><a href="http://flintdivorcelawyer.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://flintdivorcelawyer.blogspot.com</span></a><br /><a href="http://flintdivorcelawyer.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">3. Mandatory Withdrawal</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.13</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> The reference of a proceeding must be withdrawn by the district court from the bankruptcy court on the timely motion of a party when both the Bankruptcy Code and another federal law “regulating organizations or activities affecting interstate commerce” must be considered to resolve the dispute.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000157----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 157(d)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. However, that the proceeding involves consideration of a law affecting interstate commerce does not by itself mandate the withdrawal of the reference. The legislative history of</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000157----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 157(d)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> and the caselaw decided under it require mandatory withdrawal only when the resolution of a case or proceeding depends on a consideration of the non-Code federal statutes. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See, e.g., Lucre, Inc v Verizon N, Inc</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, No 1:07-CV-120, 2007 US Dist LEXIS 36846 (WD Mich May 21, 2007); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Auto Specialties Mfg Co</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 134 BR 227 (WD Mich 1990); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Michigan Real Estate Ins Trust</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 87 BR 447 (ED Mich 1988).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Laborers’ Pension Trust Fund–Detroit & Vicinity v Kiefer (In re Kiefer)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 276 BR 196 (ED Mich 2002), Federal District Judge Paul V. Gadola withdrew the reference of an adversary proceeding filed against a debtor. Plaintiff’s complaint asserted claims against defendant for breach of fiduciary duty under the Employee Retirement Income Security Act of 1974. In its decision, the court rejected other authority that withdrawal of the reference is mandatory only where the claims asserted require “substantial and material consideration” of non–Bankruptcy Code federal statutes.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><a href="http://flintdivorcelawyer.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Michigan Divorce Mediator Terry Bankert 810-235-1970</span><br /><a href="http://michigandumpmyspouse.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://michigandumpmyspouse.blogspot.com</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">4. Procedure for Withdrawal</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.14</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule5011"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 5011(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> provides that the district judge, rather than the bankruptcy judge, hear motions for the withdrawal of cases and proceedings. The filing of such a motion does not stay either the administration of a case or the progress of a proceeding.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule5011"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 5011(c)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. A motion for a stay pending a determination of the withdrawal motion “ordinarily shall be presented first to the bankruptcy judge.” </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Id. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">If a stay motion is filed with the district court judge, that motion must state “why it has not been presented toD. Abstention</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">1. Permissive</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.15</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> The jurisdictional provisions of the Bankruptcy Code include provisions for permissive and mandatory abstention by a bankruptcy judge from deciding a particular matter. The court may abstain from hearing any matters connected to a bankruptcy case “in the interest of justice, or in the interest of comity with State courts or respect for State law.”</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001334----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1334(c)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. For recent decisions construing the power of a bankruptcy court to abstain from hearing matters on permissive grounds, see </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Kmart Creditor Trust v Conaway (In re Kmart Corp)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 307 BR 586 (Bankr ED Mich 2004); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re DC Equip, Inc</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 112 BR 855 (Bankr WD Mich 1990). </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See also James P Barkman, Inc v Granger Constr Co (In re Barkman, Inc)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 170 BR 321 (Bankr ED Mich 1994).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">2. Mandatory</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.16</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Under</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001334----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1334(c)(2)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, a court must abstain from deciding a bankruptcy matter involving a “State law claim or State law cause of action” if certain requirements are met. First, a timely motion for abstention must be made by a party to that proceeding. Second, the proceeding must be based on a state law claim or cause of action. Third, the proceeding must not have been commenced in a federal court on an independent ground for federal jurisdiction,</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001334----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1334(b)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Thus, if there is any other basis for federal jurisdiction, such as diversity of citizenship, mandatory abstention does not apply. Fourth, the action must have been pending in state court as of the date the bankruptcy case is commenced (although the statutory language is somewhat ambiguous on this point). Fifth, it must appear that the state court action can be “timely adjudicated”; to determine whether it can be, the bankruptcy court must consider the state court’s calendar, the state of the bankruptcy proceeding, and the complexity of the issues involved.</span><br /><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule5011"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 5011(b)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> provides that a motion for permissive or mandatory abstention must be heard by the bankruptcy judge and is governed by</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9014"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9014</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The mere filing of an abstention motion does not stay the case or proceeding that is the subject of the motion.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule5011"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 5011(c)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. A motion for a stay is ordinarily presented first to the bankruptcy judge, who may stay proceedings pending the disposition of the motion. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Id. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">If a stay motion is filed with the district judge, the motion must state “why it has not been presented to or obtained from the bankruptcy judge.” </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Id. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">For decisions on mandatory abstention, see </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Kmart Creditor Trust v Conaway (In re Kmart Corp)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 307 BR 586 (Bankr ED Mich 2004); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Haworth, Inc v Sunarhauserman, Ltd/Sunarhauserman Ltee</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 131 BR 359 (Bankr WD Mich 1991); and </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Adams</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 133 BR 191 (Bankr WD Mich 1991). or obtained from the bankruptcy judge.” </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Id.</span><a href="http://www.mied.uscourts.gov/Rules/RuleViewer.cfm?n=LR%2083.50"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">ED Mich LR 83.50(b)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> also requires that the district court hear all withdrawal of reference motions. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See also In re Pal Nissan, Inc</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 126 BR 966, 973 (Bankr WD Mich 1991).</span><br /><a href="http://www.miwb.uscourts.gov/cms/assets/Rules-and-Forms/Rules/LBR2007-02-01.pdf"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">LBR 5011 (WD Mich)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> sets forth a detailed procedure governing motions to withdraw the reference of a bankruptcy case or proceeding in the Western District.</span><br /><a href="http://michigandumpmyspouse.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><a href="http://michigandumpmyspouse.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><a href="http://michigandumpmyspouse.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Flint Family Law ( Divorce) and Bankruptcy Lawyer</span><br /><a href="http://attorneybankert.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://attorneybankert.blogspot.com</span></a><br /><a href="http://attorneybankert.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">E. Venue of Bankruptcy Cases and Proceedings</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.17</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> In general, a debtor who seeks bankruptcy relief may file a bankruptcy petition in the court for the district in which the debtor’s domicile, residence, principal place of business, or principal assets have been located for 180 days before the date of filing.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001408----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1408</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. In the Eastern District of Michigan,</span><a href="http://www.mieb.uscourts.gov/rulesAndForms/local_Rules_revised.pdf"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">LBR 1071-1(a) (ED Mich)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> establishes three administrative units (Detroit, Flint, and Bay City) for cases filed in that district. If a case is filed in the wrong administrative unit—for example, if a corporation headquartered in Bay City files its petition in Detroit—the bankruptcy judge may transfer that case to the proper administrative unit.</span><a href="http://www.mieb.uscourts.gov/rulesAndForms/local_Rules_revised.pdf"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">LBR 1071-1(c)(1) (ED Mich)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">; </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">see, e.g., In re Romzek</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 50 BR 720 (Bankr ED Mich 1985). The Bankruptcy Court for the Western District of Michigan has adopted a similar local rule. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See</span><a href="http://www.miwb.uscourts.gov/cms/assets/Rules-and-Forms/Rules/LBR2007-02-01.pdf"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">LBR 1014 (WD Mich)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Special venue provisions for core and noncore proceedings are set forth in</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001409----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1409</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. The most important of these are in subsections (a) and (b). It is generally required that all core and noncore proceedings be brought in the court in which the bankruptcy case is pending.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001409----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1409(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Thus, if a bankruptcy trustee seeks to recover a fraudulent conveyance under</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000548----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 548</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, the trustee should file an adversary proceeding with the bankruptcy court from which the debtor’s estate is being administered. A trustee may commence a proceeding to recover a money judgment or property worth less than $1,100 (increased to $1,175 effective April 1, 2010) or a consumer debt of less than $16,425 (increased to $17,575 effective April 1, 2010) only in the district court for the district in which the defendant resides.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001409----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1409(b)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. For example, if a Michigan bankruptcy trustee seeks to recover a $900 preference from a creditor residing in San Diego, California, the trustee must commence the adversary proceeding in the Southern District of California.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Finally, it should be noted that</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001412----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1412</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> permits a district court to transfer a bankruptcy case or proceeding to another district court “in the interest of justice or for the convenience of the parties.” In addition, in the Eastern District of Michigan and the Western District of Michigan, a bankruptcy judge may “in the interest of justice or for the convenience of the parties” transfer a case or proceeding to any other court location in the district, but only after notice and a hearing.</span><a href="http://www.mieb.uscourts.gov/rulesAndForms/local_Rules_revised.pdf"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">LBR 1071-1(c)(1) (ED Mich)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">;</span><a href="http://www.miwb.uscourts.gov/cms/assets/Rules-and-Forms/Rules/LBR2007-02-01.pdf"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">LBR 1014 (WD Mich)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">; </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">see also</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule1014"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 1014</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">; </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">see generally Blachy v Butcher (In re Butcher)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, No 1:91-CV-979, 1993 US Dist LEXIS 12119 (WD Mich Aug 16, 1993), </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">rev’d and remanded on other grounds, </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Nos 95-CV-70325-DT, 95-CV-70349-DT, 1995 US Dist LEXIS 11782 (ED Mich July 31, 1995), </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">aff’d in part and rev’d in part on other grounds, </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">221 F3d 896 (6th Cir 2000), </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">cert denied, </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">532 US 994 (2001); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Cook v Cook</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 215 BR 975, </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">remanded, </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">220 BR 918 (Bankr ED Mich 1997); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Macatawa Hospitality, Inc</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 158 BR 82 (ED Mich 1993).</span><br /><a href="http://attorneybankert.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Attorney 810-235-1970 Terry Bankert</span><br /><a href="http://michiganbankruptcyblog.wordpress.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://michiganbankruptcyblog.wordpress.com</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">F. Removal and Remand of State Court Proceedings</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.18</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> A party to an action pending in a state or federal court may remove that action to the district court where the civil action is pending, provided that the district court has jurisdiction over that action under</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001334----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1334</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001452----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1452(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. However, U.S. Tax Court proceedings and civil actions to enforce governmental units’ police or regulatory power may not be removed under this provision.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">To illustrate the operation of this provision, assume that before bankruptcy, a debtor commences a claim and delivery action in state court for the recovery of property he alleges he owns. The defendant in that action then files an answer denying that the property is owned by the debtor and counterclaims for damages. If the debtor then files a Chapter 11 petition, either the debtor or the defendant may remove this action to the federal district court for the district in which the state court action is pending. That action would then be referred to the bankruptcy judge assigned to the debtor’s Chapter 11 case, provided that the debtor filed his petition in that same district. If the debtor’s case is pending in another district, the action may be transferred to the home district after it has been removed pursuant to</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001412----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1412</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><br /><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9027"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9027</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> sets forth the procedure to remove a proceeding under</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001452----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1452(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. A party seeking the removal of an action to the bankruptcy court may file a notice of removal with the bankruptcy court clerk in the district where the action is pending.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9027"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9027(a)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. This notice must contain a statement that “upon removal of the claim or cause of action the proceeding is core or non-core and, if non-core, that the party filing the notice does or does not consent” to the entry of a final order or judgment by the bankruptcy judge. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Id. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">After filing the notice of removal, the party filing the notice must serve copies of it on all parties to the removed action.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9027"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9027(b)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. A removal bond is not required.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">After filing the notice of removal, the party seeking removal must then file a copy of that notice with the clerk of the court from which the action was removed.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9027"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9027(c)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. On completion of this filing, the action is effectively removed and all further proceedings in the first court are stayed. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Id.</span><br /><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9027"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9027</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> also establishes strict time limits for removal.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9027"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9027(a)(2)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> requires that if the action is pending in a non–bankruptcy court before the filing date, the application for removal must be filed by the latest of (1) 90 days after the date on which the order for relief was entered; (2) 30 days after the entry of an order terminating the automatic stay, provided that the action was subject to the stay; or (3) 30 days after a Chapter 11 trustee qualifies for appointment, but no later than 180 days after the filing date.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9027"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9027(a)(3)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> prescribes time limits for the removal of actions that were commenced after the bankruptcy petition was filed.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Even if an action has been removed to the district court and referred to the bankruptcy judge for decision, it may later be remanded to the court in which it was first filed “on any equitable ground,” such as judicial economy.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001452----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1452(b)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. A decision to remand or not to remand such an action is not reviewable by appeal or otherwise. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Boone Coal & Timber Co v Polan</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 787 F2d 1056 (6th Cir 1986).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">A party seeking remand of the removed action must file a motion with the bankruptcy court, and the resulting contested matter is governed by</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9014"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9014</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. The motion for remand must be served on all parties to the removed action.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9027"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9027(d)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">; </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">see generally Frank & Stefani, PC v Vanderbeke</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, No 94-CV-70960-DT, 1994 US Dist LEXIS 12562 (ED Mich June 30, 1994); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Atron, Inc</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, No 1:93-CV-133, 1993 US Dist LEXIS 6848 (WD Mich Mar 9, 1993); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Adams</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 133 BR 191 (Bankr WD Mich 1991); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Haworth, Inc v Sunarhauserman, Ltd/Sunarhauserman Ltee</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 131 BR 359 (Bankr WD Mich 1991).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The procedure governing a removed action in bankruptcy court is set forth in</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9027"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9027(e)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. In general, the bankruptcy judge is empowered to issue “all necessary orders and process” to bring all parties before the court.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9027"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9027(e)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. The bankruptcy judge may require the party filing the notice of removal to file with the bankruptcy court clerk all records and proceedings relating to the removed action in the first court.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9027"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9027(e)(2)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. No later than 14 days after the notice of removal is filed, every other party to the removed action must file with the bankruptcy court clerk and serve on all parties a statement “admitting or denying any allegation in the notice of removal that upon removal of the claim or cause of action the proceeding is core or non-core.”</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9027"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9027(e)(3)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. If this statement alleges that the proceeding is noncore, it must also indicate whether that party consents to the entry of final orders and judgment by the bankruptcy judge. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Id.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">For decisions discussing the scope of the removal power set forth in</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001452----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1452(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, see </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Things Remembered v Petrarca</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 516 US 124 (1995), and </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Cook v Cook</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 220 BR 918 (Bankr ED Mich 1997).</span><br /><a href="http://michiganbankruptcyblog.wordpress.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><a href="http://michiganbankruptcyblog.wordpress.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;"></span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Flint Divorce Lawyer Attorney 810-235-1970 Terry Bankert</span><br /><a href="http://flintdivorceattorney.blogspot.com/"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://flintdivorceattorney.blogspot.com</span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">G. Appeals</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.19</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Final orders and judgments entered by bankruptcy judges in core (and, with the consent of the parties, noncore) proceedings may be appealed as of right to the federal district court sitting in that same district.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000158----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 158(a)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Orders entered on motions for permissive or mandatory abstention (other than decisions not to abstain on mandatory grounds) are not reviewable on appeal.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001334----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1334(d)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Appeals from interlocutory orders and decrees increasing or reducing the time periods under</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001121----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 1121(d)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> are appealable as of right.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000158----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 158(a)(2)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Parties may appeal all other interlocutory orders and decrees of the bankruptcy judge only on the leave of the district judge.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000158----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 158(a)(3)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">; </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">see generally In re Pilch</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, No 1:07-CV-306, 2007 US Dist LEXIS 41796 (WD Mich June 8, 2007); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Official Comm of Unsecured Creditors v Qwest Communications Corp (In re AP Liquidating Co)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 350 BR 752 (ED Mich 2006); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re PHM Credit Corp</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 99 BR 762 (ED Mich 1989). With the consent of the parties, appeals may be heard by an appellate panel consisting of three bankruptcy judges if the judicial council of a circuit has authorized and established an appellate panel service.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000158----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 158(b)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Federal circuit courts of appeal are granted jurisdiction to hear and decide appeals from “final decisions, judgments, orders, and decrees” of the district courts.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000158----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 158(d)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Circuit courts of appeal have jurisdiction to decide appeals from interlocutory orders issued by district courts sitting as courts of appeal in bankruptcy. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Connecticut Nat’l Bank v Germain</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 503 US 249 (1992). In </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Fidelity Bank, Nat’l Ass’n v MM Group</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 77 F3d 880 (6th Cir 1996), the Sixth Circuit Court of Appeals restated and reaffirmed the “person aggrieved” doctrine that determines whether a person has standing to appeal from an order of the bankruptcy court. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See also Harker v Troutman (In Re Troutman Enters, Inc)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 286 F3d 359 (6th Cir 2002).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The procedure to be followed on bankruptcy appeals to the district court is prescribed in</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule8001%E2%80%938019"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rules 8001–8019</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. If you are involved in an appeal, you should read these rules carefully and follow them strictly. A notice of appeal must be filed with the bankruptcy court clerk within 14 days of the date on which the order or judgment is entered by the bankruptcy judge.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule8002"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 8002(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. See</span><a href="http://www.icle.org/Modules/Books/FormBookDetail.aspx?ID=bnk0031&book=2009550820&chapter=1&chap_sect=&FormExhibit=form&lib=bankruptcy"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">form 1.1</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. If this deadline is not met, the appeal may be dismissed. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See, e.g., In re Superior Metal Shredders, Inc</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, No 1:93-CV-658 (WD Mich Mar 23, 1994).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">A party who receives notice that its adversary has appealed may file a cross-appeal. The appellant must then submit to the bankruptcy court clerk, within 14 days after the notice of appeal is filed, a designation of items to be included in the record on appeal and a statement of issues to be presented.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule8006"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 8006</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. After the bankruptcy court clerk assembles the record on appeal, it is transmitted to the district court.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule8007"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 8007</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Parties are normally required to file briefs, and after that oral arguments are normally held before the district judge assigned to hear the appeal.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule8009"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rules 8009, 8012</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. The district court may then affirm, modify, or reverse the ruling of the bankruptcy judge or may remand the matter to that judge with instructions for further proceedings.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule8013"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 8013</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><br /><a href="http://www.mieb.uscourts.gov/rulesAndForms/local_Rules_revised.pdf"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">LBR 8001-1 (ED Mich)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> contains particular requirements governing appeals to the federal district court. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See also</span><a href="http://www.miwb.uscourts.gov/cms/assets/Rules-and-Forms/Rules/LBR2007-02-01.pdf"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">LBR 8006-1 (WD Mich)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> (designation of record and issues on appeal). Appellants are required to file with the bankruptcy court clerk the original and four copies of the notice of appeal with two U.S. District Courts civil cover sheets. Appellants are also required to file a “sufficient number” of copies of the notice of appeal with the clerk to enable the clerk to serve all parties interested in the appeal.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Note that</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule8020"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 8020</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> provides that, if a federal district court or a bankruptcy appellate panel determines that an appeal is “frivolous,” that court may award “just damages and single or double costs to the appellee.”</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Judicial Council of the Sixth Circuit Court of Appeals has authorized the creation of bankruptcy appellate panels by the federal district courts in this circuit. The districts establishing these panels began operations on January 1, 1996. Thus, unless one of the parties to an appeal elects to have the matter determined by the federal district court, the appeal will be heard by a panel consisting of three bankruptcy judges.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000158----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 158(b)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> and (c). Once the bankruptcy appellate panel renders its final decision in the appeal, the matter may be taken to the Sixth Circuit Court of Appeals for review.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000158----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 158(d)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. The federal district judges in the Western District have created these panels (</span><a href="http://www.miwb.uscourts.gov/cms/assets/Rules-and-Forms/AdminOrders/adminOrder07-146.pdf"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://www.miwb.uscourts.gov/cms/assets/Rules-and-Forms/AdminOrders/adminOrder07-146.pdf</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">) while the Eastern District has not.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">H. Electronic Filing of Cases and Pleadings</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.20</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> On February 3, 2004, the U.S. Bankruptcy Court for the Western District of Michigan adopted Administrative Order No 2004-02, which provides for the electronic filing, signing, verification, and service of documents. This order provides that the electronic filing of a document in accordance with the Administrative Procedures “constitutes the filing of the document for all purposes.” On July 14, 2004, this court followed with Administrative Order No 2004-06, which requires “all petitions, pleadings and other papers filed in all cases and proceedings, whether pending or new,” to be filed electronically beginning on January 1, 2005. The Administrative Order was incorporated into and was superseded by the February 1, 2007, comprehensive revisions to the Western District Local Rules. Similarly, the Eastern District implemented electronic filing on a mandatory basis on January 1, 2006, and electronic filing is covered in the Eastern District’s local rules.</span><br /><hr />
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<a href="http://www.icle.org/modules/books/chapter.aspx?lib=bankruptcy&book=2009550820&chapter=1#top"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Top</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> |</span><a href="http://www.icle.org/modules/books/chapter.aspx?lib=bankruptcy&book=2009550820&chapter=1#i2009550820-ch1-ti6"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">< Previous</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> |</span><a href="http://www.icle.org/modules/books/chapter.aspx?lib=bankruptcy&book=2009550820&chapter=1#i2009550820-ch1-ti45"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Next ></span></a></div>
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">IV. Parties in Interest in Bankruptcy Cases</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">A. In General</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.21</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> In every bankruptcy case, there are certain persons, called parties in interest, who perform their statutory duties and attempt to enforce their rights and privileges. They are the debtor, the trustee, the U.S. trustee, secured creditors, unsecured creditors, and, in certain cases, creditors’ committees and equity security holders.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">B. Debtors</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">1. Chapter 7 Cases</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.22</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> In Chapter 7 cases, a debtor may be an individual, a partnership, a corporation, or some other artificial person. However, only an individual may receive a discharge of debts in Chapter 7 cases; other entities may not. The 2005 amendments require that a debtor receive an individual or group briefing that outlines the opportunities available for credit counseling. The briefing must have been received within the 180-day period preceding the filing of the bankruptcy case.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000109----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 109(h)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. This requirement is commonly referred to as the requirement for prefiling credit counseling.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Chapter 7 debtors must file certain documents with the bankruptcy court; must appear for questioning by creditors, the bankruptcy administrator, and the trustee at the meeting of creditors; and must perform other duties specified in the Code and the Bankruptcy Rules. If the individual debtor performs these duties and is not guilty of any bad acts as defined in the Code, the debtor will be granted a general discharge of prepetition debts and will retain exempt property to be able to make a fresh start in life.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">After the debtor meets the duties specifically required under the Code, the debtor is required to complete an instructional course concerning personal financial management to obtain a discharge.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000727----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 727(a)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. This is another requirement added by BAPCPA.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">2. Chapter 11 Cases</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.23</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Individuals, partnerships, and corporations all qualify for relief under Chapter 11 of the Code. A Chapter 11 debtor is normally retained as debtor-in-possession at the outset of the case and, as such, continues to operate its business as a fiduciary for all creditors within the guidelines prescribed by the bankruptcy court. The debtor, if not displaced by a trustee, then negotiates with its secured and unsecured creditors the terms of a plan calling for either the reorganization or the liquidation of the debtor’s assets and the adjustment of the rights of creditors and stockholders. This plan is sent to all creditors for a vote, and, after the votes are tallied, the plan may be confirmed and given effect by the bankruptcy court. Special rules apply for small businesses. See</span><a href="http://www.icle.org/Modules/Books/Chapter.aspx?lib=bankruptcy&book=2009550820&chapter=6"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">chapter 6.</span></a><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In 2005, BAPCPA enacted comprehensive revisions to</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001112----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 1112</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> and</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001104----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">1104</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, addressing conversion or dismissal and appointment of trustees. As amended,</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001112----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 1112</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> provides that the courts “shall” rather than “may” convert or dismiss a case if it is in the best interests of creditors and if the movant establishes cause. Comprehensive examples of cause are set forth in the provision, and, in the event that the court decides that there is a basis or cause to dismiss or convert, the court has the alternative of appointing a Chapter 11 trustee or examiner.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">3. Chapter 12 Cases</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.24</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Only “a family farmer or family fisherman with regular annual income” may be the subject of a Chapter 12 case.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000109----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 109(f)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. The term </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">family farmer </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">includes individuals, partnerships, and corporations but does not encompass all entities that are engaged in farming operations.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000101----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 101(18)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Family farmers who seek relief under Chapter 12 normally file their reorganization plans soon after their case has been commenced. Chapter 12 plans provide for payments to be made on secured and unsecured debt over a period that may last as long as five years. Confirmation of the plan does not result in the family farmer’s discharge; this is granted only when the debtor completes making payments under the plan or qualifies for a hardship discharge.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Although Congress retroactively extended Chapter 12 in 2004 ( Pub L No 108-369, 118 Stat 1749 (2004)), BAPCPA made Chapter 12 a permanent provision of the Code.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">4. Chapter 13 Cases</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.25</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Only “individuals with regular income” may file Chapter 13 petitions and propose plans providing for the composition and extension of debts. Relief under this chapter is not available to artificial persons, nor is it available to individuals who do not receive regular income or are carrying heavy debt loads.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000109----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 109</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. A Chapter 13 debtor normally files, along with a voluntary petition, a proposed Chapter 13 plan, in which the debtor proposes to pay all or a portion of the debts over time with regular income. Unlike the Chapter 7 debtor, the Chapter 13 debtor is not required to surrender nonexempt property to the trustee for liquidation; the plan may propose that the debtor keep this property while he or she pays the debts. Unlike the Chapter 11 debtor, the Chapter 13 debtor does not receive a discharge once the plan is confirmed; discharge is granted only when the debtor performs all the obligations under the plan or otherwise qualifies for a hardship discharge.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">As of April 1, 2007, the eligibility requirements for Chapter 13 debtors have been increased. Only individuals with regular income who have, on the date of filing a Chapter 13 petition, noncontingent and liquidated secured debts in an amount less than $1,010,650 and noncontingent and liquidated unsecured debts in an amount less than $336,900 are eligible for Chapter 13 relief.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000109----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 109(e)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. The debt limits are adjusted every three years,</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000104----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 104(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, and increased to $1,081,400 and $360,475 effective April 1, 2010. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See generally In re Pisczek</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 269 BR 641 (Bankr ED Mich 2001); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Faulhaber</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 269 BR 348 (Bankr WD Mich 2001).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">C. Trustees</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">1. Chapter 7 Cases</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.26</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> In Chapter 7 cases, the U.S. trustee appoints an interim trustee on the entry of an order for relief, which generally occurs when the bankruptcy petition is filed. The trustee is selected from the panel of trustees for the judicial district in which the Chapter 7 petition has been filed by or against the debtor. The U.S. trustee may serve as trustee in a Chapter 7 case if none of the panel trustees are able or willing to serve. At the meeting of creditors, the creditors may vote either to allow the interim trustee to continue as the permanent trustee or to replace that person with another from the panel. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See generally In re Lindell Drop Forge Co</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 111 BR 137 (Bankr WD Mich 1990). If no voting takes place, the interim trustee becomes the permanent trustee.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The trustee is a representative of the debtor’s estate and as such is required to investigate the debtor’s affairs and liquidate his or her nonexempt property for the benefit of creditors. The trustee may also seek to augment property of the estate by filing actions to recover preferences, fraudulent conveyances, and other voidable transfers made by the debtor to third parties. Once this property is collected and reduced to cash, the Chapter 7 trustee files a final report and account with the bankruptcy court in which the trustee proposes how these cash proceeds should be distributed. When the court approves this final report and account, the trustee distributes the cash to creditors and closes the Chapter 7 case. See</span><a href="http://www.icle.org/Modules/Books/Chapter.aspx?lib=bankruptcy&book=2009550820&chapter=5"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">chapter 5</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> for further discussion of the trustee’s role in Chapter 7 cases.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">2. Chapter 11 Cases</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.27</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Trustees are appointed in Chapter 11 cases only when the bankruptcy court, after notice and a hearing, finds either that sufficient cause exists or that the appointment is in the best interests of creditors, equity security holders, and the estate. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Cause </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">is defined in the Code as including “fraud, dishonesty, incompetence, or gross mismanagement” by the debtor-in-possession.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001104----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 1104(a)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001104----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 1104(c)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> permits a party in interest to call a meeting of creditors to elect a trustee within 30 days after the bankruptcy court has ordered the appointment of a Chapter 11 trustee. A trustee is required to investigate the debtor’s affairs and, “as soon as practicable,” file a Chapter 11 plan or explain to the court why he or she cannot do so. The trustee may also operate the debtor’s business. See</span><a href="http://www.icle.org/Modules/Books/Chapter.aspx?lib=bankruptcy&book=2009550820&chapter=6"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">chapters 6</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> and</span><a href="http://www.icle.org/Modules/Books/Chapter.aspx?lib=bankruptcy&book=2009550820&chapter=7"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">7</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> for further discussion of the trustee’s role in Chapter 11 cases.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">3. Chapter 12 Cases</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.28</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> The U.S. trustee appoints trustees to serve in Chapter 12 cases.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001202----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 1202(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. If a standing Chapter 12 trustee has not been appointed, the U.S. trustee may appoint a disinterested person to serve as trustee in a particular Chapter 12 case. If necessary, the U.S. trustee may serve as trustee in the case. If the bankruptcy court removes a family farmer as debtor-in-possession for cause, which includes fraud, dishonesty, incompetence, and gross mismanagement, the trustee is required to operate the farm in the debtor’s absence. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001202----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 1202(b)(5)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">,</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001204----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">1204</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">4. Chapter 13 Cases</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.29</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> The U.S. trustee, not the bankruptcy court, appoints trustees to serve in Chapter 13 cases.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001302----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 1302(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. If a standing Chapter 13 trustee has not been appointed for a particular district, the U.S. trustee may then appoint a disinterested person to serve as trustee in a Chapter 13 case. If necessary, the U.S. trustee may serve as trustee in a case. These trustees must perform certain duties specified in the Code, including appearing at all confirmation hearings and making sure the debtor begins making timely payments under the plan. The standing trustee also disburses to creditors the funds the debtor pays the trustee in accordance with the terms of the confirmed Chapter 13 plan.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">D. Secured Creditors</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.30</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Secured creditors are those entities who hold allowed secured claims against the debtor in a bankruptcy case. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000101----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 101(5)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, (10);</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000506----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 506</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. These claims are collateralized by either a security interest in or a lien on the debtor’s real or personal property.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000101----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 101(37)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, (51). Creditors who hold claims against the debtor in an amount that exceeds the value of their collateral are considered partially secured or undersecured creditors (i.e., they hold a secured claim to the extent of the collateral’s value and an unsecured claim for any remaining deficiency). This does not apply to secured claims for (1) motor vehicles for personal use where the debt was incurred within 910 days preceding the filing or (2) other collateral if the debt was incurred within one year preceding the filing.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001325----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 1325(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Secured creditors are normally very active in bankruptcy cases. In Chapter 7 cases, secured creditors usually seek to recover their collateral from the trustee and the debtor to liquidate that property themselves, or they cooperate with the trustee in arranging for the sale of that property in the bankruptcy court. In Chapter 11, 12, and 13 cases, secured creditors demand adequate protection of their interests in collateral at the outset of the case, especially if that collateral is cash collateral. For a Chapter 11, 12, or 13 plan to be confirmed, secured creditors must generally either recover all their collateral or be paid its present value under the plan.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">E. Unsecured Creditors</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.31</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Unsecured creditors hold allowed claims against the debtor without the benefit of any collateral or hold collateral the value of which is less than the amount of their claims. Unsecured creditors are normally not entitled to include in their claims any interest that accrues on their claims after the date the bankruptcy petition is filed. In Chapter 7, 12, and 13 cases, unsecured creditors generally file their proofs of claim and wait to receive any distributions from the Chapter 7 trustee or under the confirmed Chapter 12 or Chapter 13 plans. In Chapter 7, Chapter 12, and Chapter 13 cases, they may also file an adversary proceeding to have the debt forming the basis of their claim deemed nondischargeable. In Chapter 11 cases, unsecured creditors also file proofs of claim and may elect to serve as members of the creditors’ committee appointed by the bankruptcy court. In addition, unsecured creditors are entitled to vote on any proposed Chapter 11 plan and must receive under any confirmed plan a sum not less than what they would receive if the debtor were liquidated under Chapter 7.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Valentine</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 196 BR 386 (Bankr ED Mich 1996), Bankruptcy Judge Rhodes held that creditors lack standing to request the bankruptcy court to make a report to the U.S. attorney under</span><a href="http://www.law.cornell.edu/uscode/html/uscode18/usc_sec_18_00003057----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">18 USC 3057(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. This statute permits a judge to refer a possible criminal matter involved in a bankruptcy case to the U.S. attorney.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">F. Creditors’ Committees</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.32</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Creditors’ committees are organizations of entities holding unsecured claims against the debtor; they are appointed by the U.S. trustee. In every Chapter 11 case, the U.S. trustee must normally appoint at least one such committee “as soon as practicable” after the case commences.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001102----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 1102(a)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Creditors’ committees may also be appointed in Chapter 7 cases, although that is rarely done. The U.S. trustee may appoint additional committees of creditors or of equity security holders in Chapter 11 cases. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Id. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">If the bankruptcy court orders the appointment of additional committees to ensure adequate representation in Chapter 11 cases, the U.S. trustee appoints the members of those committees.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001102----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 1102(a)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. On the request of a party in interest, the bankruptcy court may order the appointment of additional committees to “assure adequate representation” of creditors or equity security holders.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001102----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 1102(a)(2)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. The members of these additional committees must also be appointed by the U.S. trustee. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Id. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Creditors’ committees may not be appointed in Chapter 12, Chapter 13, or small business cases.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The membership of a creditors’ committee in a Chapter 11 case normally consists of persons who are willing to serve and who hold the largest unsecured claims against the debtor. If a committee is organized before the Chapter 11 case is commenced, the committee must have been chosen fairly and be representative of all unsecured claims.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001102----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 1102(b)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. The Pension Benefit Guaranty Corporation and the Resolution Trust Corporation may serve on creditors’ committees.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000101----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 101(41)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Committee members are fiduciaries to the class of unsecured creditors and must be free from conflicts of interest when acting in their official capacity. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See, e.g., In re Tucker Freight Lines, Inc</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 62 BR 213 (Bankr WD Mich 1986). They are charged with the duties of consulting with the debtor-in-possession, investigating the debtor’s affairs and the operation of its business, and participating in the formulation of a Chapter 11 plan.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00001103----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 1103(c)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. If a trustee is appointed in a Chapter 11 case, the committee coordinates its activities with the trustee.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">For decisions on the composition and powers of a creditors’ committee, see </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Canadian Pac Forest Prods v JD Irving, Ltd (In re Gibson Group)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 66 F3d 1436 (6th Cir 1995); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">American Specialty Cars Holding, LLC v Official Comm of Unsecured Creditors of ASC Inc (In re ASC Inc)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 386 BR 187 (ED Mich 2008); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Dow Corning Corp</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 212 BR 258 (ED Mich 1997); and </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Official Unsecured Creditors Comm of Long Dev v Oak Park Vill Ltd P’ship (In re Long Dev)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 211 BR 232 (Bankr WD Mich 1994).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">G. Equity Security Holders</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.33</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> In general, equity security holders are the ownership class of the debtor, such as shareholders of a corporation or limited partners of a limited partnership. They are last in line to receive any distributions under Chapter 7, Chapter 11, and Chapter 12. However, equity security holders are not powerless in bankruptcy cases. For example, the U.S. trustee may permit them to form a committee and to retain professionals to represent their interests in a Chapter 11 case.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">H. U.S. Trustees</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.34</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> Daniel M. McDermott is the U.S. trustee for this region, and assistant U.S. trustees sit in each federal judicial district in the region. These assistants are authorized to act on behalf of the U.S. trustee. The assistant U.S. trustee for the Western District of Michigan is Matthew Cronin. The assistant U.S. trustee for the Eastern District of Michigan is Marion Joseph Mack, Jr. These assistants employ a staff to aid them with their duties.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The U.S. trustee is a new party in interest who “may raise and may appear and be heard on any issue” in any bankruptcy case or proceeding.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000307----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 307</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">; </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">see also In re Revco DS</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 901 F2d 1359 (6th Cir 1990). However, the U.S. trustee may not file a plan in Chapter 11 cases.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000307----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 307</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. The U.S. trustee for the region is not required to appear in person in bankruptcy cases or proceedings but may act through a “designee” such as the assistant.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000102----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 102(9)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Any references to the U.S. trustee should be read to include the assistant U.S. trustee.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The duties of the U.S. trustee are specified in</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000586----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 586</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Those duties include the following:</span> <ul>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">establishing, maintaining, and supervising a panel of private trustees for each judicial district</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">serving as trustee when required to do so in a particular bankruptcy case and performing the trustee’s statutory duties in that case</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">reviewing fee applications in bankruptcy cases in accordance with national guidelines promulgated by the Executive Office of the U.S. Trustee</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">commenting on these fee applications and, if appropriate, objecting to them</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">monitoring plans and disclosure statements filed in Chapter 11 cases and commenting on them</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">monitoring plans filed in Chapter 12 and 13 cases and commenting on them</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">monitoring creditors’ committees</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: disc; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">monitoring the progress of bankruptcy cases and taking actions to prevent undue delay in that progress</span></li>
</ul>
<br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Any proceeding to contest an act of the U.S. trustee or the failure of the U.S. trustee to act is a contested matter.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule2020"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 2020</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule2002"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rules 2002(k)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> and</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9034"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">9034</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> mandate that copies of certain pleadings filed in bankruptcy cases be served on the U.S. trustee. For example, applications for the employment and compensation of professionals must be served on the U.S. trustee.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9034"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 9034(d)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">,</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">(e)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. These notices must be served within the time periods required by the Bankruptcy Rules.</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule2002"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rules 2002(k)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">,</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule9034"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">9034</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. In addition, the U.S. trustee may request that other papers be served on him or her. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Id.</span><a href="http://www.miwb.uscourts.gov/cms/assets/Rules-and-Forms/Rules/LBR2007-02-01.pdf"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">LBR 5005-3 (WD Mich)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> and</span><a href="http://www.mieb.uscourts.gov/rulesAndForms/local_Rules_revised.pdf"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">LBR 2002-1(b)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">,</span><a href="http://www.mieb.uscourts.gov/rulesAndForms/local_Rules_revised.pdf"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">2002-4</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, and</span><a href="http://www.mieb.uscourts.gov/rulesAndForms/local_Rules_revised.pdf"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">9013-1(b) (ED Mich)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> prescribe other pleadings that must be served on the U.S. trustee in bankruptcy cases pending in Michigan.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The assistant U.S. trustees for the Eastern and Western Districts of Michigan have adopted a number of written forms to assist them in the performance of their statutory duties. These forms are available from their offices on request.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The U.S. Trustee System is operated through the creation of a special fund designated as the “United States Trustee System Fund.”</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000589---a000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 589a</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. This fund is used to pay the expenses incurred by U.S. trustees in performing their statutory duties. Expenses properly payable from this fund include salaries, travel, the rental of space, books, furniture, printing, and “miscellaneous services, including those obtained by contract.”</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000589---a000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 589a(a)(8)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. The fund is financed by the allocation of monies paid for filing fees, trustee’s fees, and a new quarterly fee paid in Chapter 11 cases.</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00000589---a000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 589a(b)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Brookover</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 352 F3d 1083 (6th Cir 2003), the Sixth Circuit Court of Appeals held that the U.S. trustee has the authority to accept the resignation of a Chapter 12 trustee in a pending case without bankruptcy court approval. In </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Joelson v United States</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 86 F3d 1413 (6th Cir 1996), the Sixth Circuit Court of Appeals held that the decision of a U.S. trustee to remove a former trustee from active case rotation was not subject to judicial review.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Robiner v Danny’s Mkts, Inc (In re Danny’s Mkts, Inc)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 266 F3d 523 (6th Cir 2001), the Sixth Circuit Court of Appeals held that the fees payable to the U.S. trustee under</span><a href="http://www.law.cornell.edu/uscode/html/uscode28/usc_sec_28_00001930----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">28 USC 1930(a)(6)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> are to be calculated on the basis of postconfirmation operating expenses in Chapter 11 cases.</span><br /><hr />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-align: right;">
<a href="http://www.icle.org/modules/books/chapter.aspx?lib=bankruptcy&book=2009550820&chapter=1#top"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Top</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> |</span><a href="http://www.icle.org/modules/books/chapter.aspx?lib=bankruptcy&book=2009550820&chapter=1#i2009550820-ch1-ti28"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">< Previous</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> |</span><a href="http://www.icle.org/modules/books/chapter.aspx?lib=bankruptcy&book=2009550820&chapter=1#i2009550820-ch1-ti46"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Next ></span></a></div>
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">V. Special Role of Counsel</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.35</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> All the parties in interest listed and defined in</span><a href="http://www.icle.org/Modules/Books/Chapter.aspx?lib=bankruptcy&book=2009550820&chapter=1#i2009550820-1-21"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">§§1.21–1.34</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> may retain counsel to represent them in bankruptcy cases. When you are asked to represent a secured or unsecured creditor in a case, your attorney-client relationship is normally not subject to the bankruptcy court’s scrutiny. However, that is not the case when you represent the interests of a debtor, trustee, or committee in a bankruptcy case.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">To represent a Chapter 11 debtor, a trustee in any chapter proceeding, or a creditors’ committee, you should be retained pursuant to a specific order entered by the bankruptcy court. If this order is not entered, the court may later refuse to permit you to receive payment for legal services rendered in the bankruptcy case. In addition, to represent any of these entities, you may not hold an interest adverse to the bankruptcy estate and must be a “disinterested person” as defined by</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000101----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 101(14)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See generally In re Eagle-Picher Indus, Inc</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 999 F2d 969 (6th Cir 1993); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Childress v Middleton Arms LP</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 934 F2d 723 (6th Cir 1991); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re Butterfield Ltd P’ship</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 131 BR 67 (Bankr ED Mich 1990). Although you are not automatically disqualified from representing a Chapter 7, 11, or 12 trustee because of your representation of a creditor in the same case, the bankruptcy court may deny the request for your appointment if another creditor objects and if the court finds an actual conflict of interest.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000327----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 327(c)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Bankruptcy Reform Act of 1994 and BAPCPA amended</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000330----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 330(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> to specify six “relevant factors” to be considered by a bankruptcy court in determining the reasonableness of requested professional fees. These factors are as follows:</span> <ol>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">the time spent</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">the rates charged</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">whether the services were necessary to the administration of the bankruptcy case or beneficial when the service was rendered toward the completion of the case</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">whether the services were performed within a reasonable amount of time</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">whether the compensation is based on “the customary compensation charged by comparatively skilled practitioners” in non–bankruptcy cases</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">whether the applicant is board certified or has otherwise demonstrated skill and expertise in the bankruptcy field</span></li>
</ol>
<br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The local bankruptcy rules for the Eastern and Western District of Michigan contain specific provisions governing the retention and compensation of attorneys and other professionals retained by trustees, debtors, and creditors’ committees.</span><a href="http://www.mieb.uscourts.gov/rulesAndForms/local_Rules_revised.pdf"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">LBR 2014-1 (ED Mich)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">;</span><a href="http://www.miwb.uscourts.gov/cms/assets/Rules-and-Forms/Rules/LBR2007-02-01.pdf"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">LBR 2014 (WD Mich)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Professionals who seek to be compensated from estate funds must strictly comply with these provisions. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See, e.g., In re Doors & More, Inc</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 126 BR 43 (Bankr ED Mich 1991); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">see also In re Doors & More, Inc</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 127 BR 1001 (Bankr ED Mich 1991).</span><a href="http://www.miwb.uscourts.gov/cms/assets/Rules-and-Forms/Rules/LBR2007-02-01.pdf"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">LBR 2016 (WD Mich)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> governs the procedure to be used on fee applications filed by professional persons.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The court must approve compensation for your services as counsel to a debtor, trustee, or committee from estate funds. You will jeopardize your right to receive this compensation if you have not been retained by court order or if you have a conflict of interest. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">See, e.g., In re Gray</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 64 BR 505 (Bankr ED Mich 1986). In addition, as counsel to a debtor under any chapter of the Code, you must disclose to the court, in writing, a statement of the compensation paid or agreed to be paid to you by the debtor.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000329----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 329(a)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">;</span><a href="http://www.law.cornell.edu/rules/frbp/rules.htm#Rule2016"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Bankruptcy Rule 2016</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. If the court finds this payment or agreement to be excessive, it may order the return of the payment to the extent that it is excessive or may cancel the agreement.</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000329----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 329(b)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">; </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">see, e.g., In re Riverview Fin Servs, Inc</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 67 BR 714 (Bankr ED Mich 1986).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Bankruptcy Court for the Western District of Michigan issued a Memorandum Regarding Allowance of Compensation and Reimbursement of Expenses for Court-Appointed Professionals containing rules for fee applications filed in all bankruptcy cases. This may be found on the court’s Web site at</span><a href="http://www.miwb.uscourts.gov/cms/assets/Rules-and-Forms/AdminOrders/FeeGuidelinesMemorandum1.pdf"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">http://www.miwb.uscourts.gov/cms/assets/Rules-and-Forms/AdminOrders/FeeGuidelinesMemorandum1.pdf</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. Note that these guidelines were amended effective January 1, 2010.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The U.S. Supreme Court has held that</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000330----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 330(a)(1)</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> does not authorize compensation awards to debtors’ attorneys from estate funds, unless they are employed as authorized by</span><a href="http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000327----000-.html"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">11 USC 327</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. If the attorney is to be paid from estate funds in a Chapter 7 case, he or she must be employed by the trustee and approved by the court. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Lamie v United States Tr</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 540 US 526 (2004); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">accord In re TLI, Inc</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 292 BR 589 (Bankr WD Mich 2003). For decisions on the retention of professionals and compensation of attorneys in bankruptcy cases, see </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Nischwitz v Miskovic (In re Airspect Air, Inc)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 385 F3d 915 (6th Cir 2004); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">United States v Schilling (In re Big Rivers Elec Corp)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 355 F3d 415 (6th Cir 2004); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Henderson v Kisseberth (In re Kisseberth)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 273 F3d 714 (6th Cir 2001), </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">clarified, </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">No 00-3715, 2002 US App LEXIS 812 (6th Cir Jan 15, 2002); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Specker Motor Sales Co v Eisen</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 300 BR 687 (WD Mich 2003), </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">aff’d, </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">393 F3d 659 (6th Cir 2004); </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In re New Boston Coke Corp</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 299 BR 432 (Bankr ED Mich 2003).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The Sixth Circuit Court of Appeals, in reversing the bankruptcy and district court decisions rendered below, held that a bankruptcy attorney admitted to the Texas bar but not to the Michigan bar could nevertheless practice bankruptcy law in Michigan under</span><a href="http://www.miwd.uscourts.gov/RULES%20OPINIONS/local_civil_rules.htm"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">WD Mich LCivR 83.1</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">. </span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: italic; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Rittenhouse v Delta Home Improvement, Inc (In re Desilets)</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">, 291 F3d 925 (6th Cir 2002).</span><br /><hr />
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-align: right;">
<a href="http://www.icle.org/modules/books/chapter.aspx?lib=bankruptcy&book=2009550820&chapter=1#top"><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Top</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> |</span><a href="http://www.icle.org/modules/books/chapter.aspx?lib=bankruptcy&book=2009550820&chapter=1#i2009550820-ch1-ti45"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">< Previous</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> |</span><a href="http://www.icle.org/modules/books/chapter.aspx?lib=bankruptcy&book=2009550820&chapter=1#forms"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">Next ></span></a></div>
<span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">VI. The National Bankruptcy Review Commission</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: bold; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">§1.36</span><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> The Bankruptcy Reform Act of 1994 established a National Bankruptcy Review Commission composed of nine members appointed by the President of the United States, the Chief Justice of the U.S. Supreme Court, and Congressional leaders. Bankruptcy Reform Act of 1994, Pub L No 103-394, 108 Stat 4106 (1994), §604(a). The commission members were charged with four separate duties:</span> <ol>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">to investigate and study issues and problems relating to the Code</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">to evaluate proposals and arrangements concerning those issues and problems</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">to prepare and submit to Congress, the chief justice, and the president a report containing the commission’s findings, conclusions, and any recommendations for legislative or administrative action</span></li>
<li style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; list-style-type: decimal; text-decoration: none; vertical-align: baseline;"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">to solicit divergent views of all parties concerned with the operation of the bankruptcy system</span></li>
</ol>
<br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">In addition, they were to submit a report not later than two years after the commission’s first meeting, which was held on October 20, 1995. The chair person of the committee was Bradley Williamson, who appointed Steven H. Case as executive director; Elizabeth Warren was appointed the reporter for the commission.</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">The commission held approximately 35 meetings at different locations throughout the United States at which testimony was given by various constituents involved within the bankruptcy process. Debtors’ attorneys, creditors’ attorneys, counsel for unsecured creditors’ committees, debtors, and creditors testified before the commission. Interim reports were issued and specific issues were reviewed at the various meeting that were held. The meetings culminated in a report that was issued on October 20, 1997. The commercial recommendations were noncontroversial and most were incorporated into the 2005 amendments to the Bankruptcy Code. On the other hand, the consumer provisions recommended dramatic changes to the consumer provisions, specifically radical changes in Chapters 7 and 13, and as a result, in September 1997 HR 2500 was introduced in the House. HR 2500 was an attempt to limit access to the bankruptcy system by individuals who had the means to repay their debts. Eventually, this provision after modification was passed by Congress in 2005, creating barriers and limitations in the relief granted to individuals in Chapter 7 and 13 cases. See</span><a href="http://www.icle.org/Modules/Books/Chapter.aspx?lib=bankruptcy&book=2009550820&chapter=2"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">chapters 2</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> and</span><a href="http://www.icle.org/Modules/Books/Chapter.aspx?lib=bankruptcy&book=2009550820&chapter=3"><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> </span><span style="background-color: transparent; color: #000099; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: underline; vertical-align: baseline; white-space: pre-wrap;">3</span></a><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"> for further discussion of the 2005 amendments (BAPCPA).</span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><br /><span style="background-color: transparent; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;"></span><div dir="ltr">
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<tr style="height: 0px;"><td style="border-bottom: rgb(170,170,170) 1px dotted; border-left: rgb(170,170,170) 1px dotted; border-right: rgb(170,170,170) 1px dotted; border-top: rgb(170,170,170) 1px dotted; padding-bottom: 7px; padding-left: 7px; padding-right: 7px; padding-top: 7px; vertical-align: top;"><div dir="ltr" style="margin-bottom: 0pt; margin-top: 0pt; text-align: center;">
<span style="background-color: #e5e5e5; color: black; font-family: Arial; font-size: 11pt; font-style: normal; font-variant: normal; font-weight: normal; text-decoration: none; vertical-align: baseline; white-space: pre-wrap;">Handling Consumer and Small Business Bankruptcies in Michigan ch 1 (Richardo I. Kilpatrick et al eds, ICLE 2009), at http://www.icle.org/modules/books/chapter.aspx/?lib=bankruptcy&book=2009550820&chapter=01 (last updated 10/07/2011). </span></div>
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</span></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3826365535436401382.post-91357143298136956902011-04-23T02:04:00.000-07:002011-04-24T03:09:21.550-07:00FLINT BANKRUTCY LAWYER (810) 235-1970, SHARES RECENT BANKRUPTCY JUDGE OPINION ON ATTORNEY FEES.<div dir="ltr" style="text-align: left;" trbidi="on">You might ask.IN MY BAY CITY, LAPEER, SAGINAW, OWOSSO OR FLINT BANKRUTPCY CAN I CHANGE ATTORNEYS. ANSWER : YES. FOR MORE BANKRUPTCY INFORMATION CALL (810) 235-1970 <br />
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<span style="font-family: TimesNewRomanPSMT;"></span><b><span style="font-family: TimesNewRomanPS-BoldMT;"></span><span style="font-family: TimesNewRomanPSMT;"><div align="left">I.</div><div align="left">The debtor filed for chapter 7 relief on July 24, 2008. He was represented by Edward J.</div><div align="left">Gudeman of Weik and Assoc., P.C. On December 2, 2010, the debtor filed a motion to remove</div><div align="left">Gudeman as his attorney. The motion was granted by order dated January 31, 2011.</div><div align="left">On March 22, 2011, the debtor, through his new attorney, Jay Kalish, filed a motion,</div><div align="left">pursuant to § 329 and Rule 2017, for a determination of the propriety of his fee agreement with</div><div align="left">Gudeman and for disgorgement of fees. The debtor also filed a motion seeking to remove a state</div><div align="left">court action that Gudeman had filed against the debtor for collection of fees for the bankruptcy case.</div><div align="left">The Court conducted a hearing on the motions on April 11, 2011. The Court denied the</div><div align="left">debtor’s motion for removal as untimely and requested briefs from the parties on the issue of</div><div align="left">whether the Court’s jurisdiction under § 329 is exclusive.</div><div align="left">II.</div><div align="left">Federal district courts, and their bankruptcy courts by delegation, have exclusive jurisdiction</div><div align="left">“of all cases under title 11.” 28 U.S.C. § 1334(a). Pursuant to § 1334(e), the district courts also</div><div align="left">have exclusive jurisdiction over property of the debtor, property of the estate, and all claims and</div><div align="left">causes of action relating to § 327. In all other cases “arising under title 11, or arising in or related</div></span><div align="left"><span style="font-family: TimesNewRomanPSMT;">to cases under title 11,” the district courts “shall have original but not exclusive jurisdiction[.]” 28</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">See </span><span style="font-family: TimesNewRomanPSMT;">11 U.S.C. § 523(c); </span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">Dollar Corp. v. Zebedee (In re</span><span style="font-family: TimesNewRomanPSMT;">.), 25 F.3d 1320, 1325 (6th Cir. 1994) (“Congress intended ‘to take the determinations</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">Spilman v. Harley</span><span style="font-family: TimesNewRomanPSMT;">, 656 F.2d 224, 226 (6th Cir.1981)).</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">court </span><span style="font-family: TimesNewRomanPSMT;">determines such debt to be excepted from</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">Moncur v. Agricredit Acceptance Co.</span><span style="font-family: TimesNewRomanPSMT;"> </span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">In re Moncur</span><span style="font-family: TimesNewRomanPSMT;">), 328 B.R. 183, 189 (B.A.P. 9th Cir. 2005).</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">the court </span><span style="font-family: TimesNewRomanPSMT;">may cancel any such agreement, or order the return of any such payment, to the</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">In re Campbell</span><span style="font-family: TimesNewRomanPSMT;">, </span><span style="font-family: TimesNewRomanPSMT;">debtors’ attorneys, providing protection to debtors and creditors and preventing overreaching by</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">Jensen v. United States Trustee </span><span style="font-family: TimesNewRomanPSMT;">(</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">In re Smitty’s Truck Stop, Inc</span><span style="font-family: TimesNewRomanPSMT;">.), 210 B.R. 844, 848</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">See also In re Busy Beaver Bldg. Ctrs., Inc</span><span style="font-family: TimesNewRomanPSMT;">., 19 F.3d 833, 844 (3rd Cir.</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">In re Williams</span><span style="font-family: TimesNewRomanPSMT;">, 2003 WL 22722841 (Bankr. D. Vt. 2003), explained:</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;"> <div align="left">Id. </div><div align="left">Given the plain language of § 329 and the important role of the bankruptcy court in</div><div align="left">monitoring the relationship between debtors and professionals, the Court concludes that it is within the sole province of the bankruptcy court to determine the propriety of a debtor’s fee agreement with his or her attorney.</div><div align="left">Further support for this conclusion is found in </div><div align="left">188 F.3d 1160, 1165 (9th Cir. 1999), wherein the court explained:</div><div align="left">[B]ankruptcy courts have recognized that fee issues, and control of</div><div align="left">the parties and their representatives, can be central to the proper</div><div align="left">conduct of bankruptcy proceedings. We expressed a similar view in</div><div align="left">a different context when we pointed out that regulation of the</div></span><span style="font-family: TimesNewRomanPSMT;">at *3.</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">Elias v. United States Trustee </span><span style="font-family: TimesNewRomanPSMT;">(</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">In re Elias</span><span style="font-family: TimesNewRomanPSMT;">),</span> <div align="left"><span style="font-family: TimesNewRomanPSMT;">activities of parties before the bankruptcy court should be in the</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">See MSR Exploration, Ltd. v. Meridian</span><span style="font-family: TimesNewRomanPSMT;">(9th Cir.1996). Bankruptcy courts surely</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;"> </span><span style="font-family: TimesNewRomanPSMT;">at 1165. </span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">See also In re Williams</span><span style="font-family: TimesNewRomanPSMT;">, 2003 WL 22722841, *2 (Bankr. D. Vt. 2003) (“Bankruptcy</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">Edgewater Sun Spot, Inc. v. Pennington & Haben</span><span style="font-family: TimesNewRomanPSMT;">(</span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">In re Edgewater Sun Spot, Inc</span><span style="font-family: TimesNewRomanPSMT;">.), 183 B.R. 938, 943 (N.D. Fla.1995), </span><i><span style="font-family: TimesNewRomanPS-ItalicMT;">aff'd</span><span style="font-family: TimesNewRomanPSMT;">, 84 F.3d 438 (11th</span><b><span style="font-family: CourierNewPS-BoldMT; font-size: xx-small;"><span style="font-family: CourierNewPS-BoldMT; font-size: xx-small;"></span></span><span style="font-family: TimesNewRomanPS-BoldMT;"> <div align="left">Signed on April 22, 2011</div><div align="left"></div></span></b></i></i></i></i></i></i><br />
<div align="left">Id. courts, through the United States district courts, have exclusive jurisdiction over the matter of</div><div align="left">attorney's fees in a bankruptcy proceeding.” citing </div><div align="left">P.A. Cir.1996)).</div><div align="left"><br />
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Accordingly, the Court concludes that it has exclusive jurisdiction over the debtor’s claim</div><div align="left">under 11 U.S.C. § 329, and that therefore the state court matter of Gudeman & Associates, P.C. vs.</div><div align="left">Axxxxx, Oakland County Circuit Court Case No. 2010-110550-CK, shall be stayed</div><div align="left">pending this Court’s resolution of that claim.</div><div align="left"><br />
For Publication </div><div align="left">.</div></div><div align="left">hands of that court alone. </div><div align="left">Oil, Inc., 74 F.3d 910, 915 </div><div align="left">have the most expertise and interest in controlling their own</div><div align="left">proceedings and in regulating the behavior of professionals who seek</div><div align="left">to appear before them or work on cases under their tutelage. It is</div><div align="left">those courts that help prevent distressed debtors, and their creditors,</div><div align="left">from becoming cheerless carrion for voracious vultures, who would</div><div align="left">pick the estate clean. In my opinion, there is a need for exclusivity</div><div align="left">and I would require it . . . .</div></i></i></i></i></i></i></i></i></i></i></i></i></i></i></i><br />
<div align="left">( Likewise, § 329 contains the same restrictive language. That section provides, in pertinent</div><div align="left">part, that an attorney representing a debtor must file with the court a statement of compensation paid or agreed to be paid and that “if such compensation exceeds the reasonable value of any such</div><div align="left">services, extent excessive[.]” 11 U.S.C. § 329(b) (emphasis added).</div><div align="left"><br />
Section 329 “was enacted because ‘payments to a debtor’s attorney provide serious potential</div><div align="left">for evasion of creditor protection provisions of the bankruptcy laws, and serious potential for</div><div align="left">overreaching by the debtor’s attorney, and should be subject to careful scrutiny.’” </div><div align="left">259 B.R. 615, 625 (Bankr. N.D. Ohio 2001) (quoting H.R .Rep. No. 95–595, at 329 (1977), reprinted in 1978 U.S.C.C.A.N. 5963, 6285). It enables courts to carefully scrutinize compensation paid to </div><div align="left">attorneys. (B.A.P. 10th Cir. 1997). </div><div align="left">1994) (“Disagreeable as the chore may be, the bankruptcy court must protect the estate, lest</div><div align="left">overreaching attorneys or other professionals drain it of wealth which by right should inure to the</div><div align="left">benefit of unsecured creditors.”).</div><div align="left">The court in Ensuring that the relationship between a debtor and his or her</div><div align="left">attorney is fair is one of the primary duties the bankruptcy courts</div><div align="left">must perform in their capacity as guardians of the integrity of the</div><div align="left">bankruptcy system. Clients seeking bankruptcy advice are frequently</div><div align="left">in particularly vulnerable situations, where they have both a desperate</div><div align="left">need for immediate financial relief and very little understanding of</div><div align="left">the complexities of bankruptcy law. Therefore, court review of</div><div align="left">transactions between debtors and their attorneys require sensitivity to</div><div align="left">these vulnerability factors, acknowledgment of the very different</div><div align="left">bargaining position of each party in the professional relationship, and</div><div align="left">a heightened level of scrutiny.</div></div><div align="left">U.S.C. § 1334(b).</div><div align="left">An exception to the general rule of concurrent jurisdiction is found in § 523(c)(1), which</div><div align="left">grants bankruptcy courts exclusive jurisdiction to determine the dischargeability of debts described in § 523(a)(2), (4) and (6) of the Code. </div><div align="left">Dollar Corp governed by 11 U.S.C. § 523(c) away from state courts and grant exclusive jurisdiction in thebankruptcy courts.’”) (quoting </div><div align="left">“[T]he operative language ‘unless the discharge,’ which was carried forward from a 1970 amendment to the prior Bankruptcy Act, is understood to deprive nonbankruptcy courts of jurisdiction.” </div></b><br />
<div align="left">United States Bankruptcy Court</div><div align="left">Eastern District of Michigan</div><div align="left">Southern Division</div><div align="left">In re:</div><div align="left">Axxxxx x . Pxxxxx, Case No. 08-57865-R</div><div align="left">Debtor. Chapter 7</div><div align="left">_________________________________/</div><br />
<div align="left">Opinion and Order Granting Stay</div></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3826365535436401382.post-53215302097874127312011-03-28T18:42:00.000-07:002011-03-28T18:42:39.439-07:00BANKRUPTCY ATTORNEY ASKS! Do you know what happens at a meeting of creditors in a Flint Bankruptcy?<div dir="ltr" style="text-align: left;" trbidi="on"><br />
When you file a Flint Bankruptcy Petition the bankruptcy court schedules what is called a " meeting of creditors." This happens within a month usually. The Bankruptcy court will send out the "offical" notice of you bankruptcy filing and this meeting to you and the creditors you have told the court exists.<br />
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TOPIC BANKRUPTCY:EASTERN DISTRICT OF MICHIGAN BANKRUPTCY COURT. BANKRUPTCY FLINT ,ATTORNEY POSTING BY Flint Bankruptcy Lawyer Terry R. Bankert 810-235-1970.[Comments of Flint Bankruptcy lawyer Terry R. Bankert ,810-235-1970 ,in bracket or CAP headlines. If you have bankruptcy questions call today-810-235-1970 this article presented in a SEO format.<br />
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The creditors meeting is called a 341 hearing is required attenmdance for you. But it often is the only event you must attend in your bankruptcy. Take a deep breath and remember to take two forms of identification , a picture id and proof of your social security number. If you have properly prepared your petition it should be a piece of cake. if you have questions contact Terry Bankert at <a href="http://www.attorneybankert.com/">http://www.attorneybankert.com/</a><br />
810-235-1970 we can prepare those documents for you.<br />
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</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3826365535436401382.post-8561326410348503902011-03-27T17:33:00.000-07:002011-03-27T17:33:05.527-07:00STOP THE MADNESS FILE BANKRUPTCY CHAPTER 13 OR 7<div dir="ltr" style="text-align: left;" trbidi="on"><span lang="EN"> BANKRUPTCIES IN MICHGIAN are common. Did you know that once you file you have a powerful economic tool. Its is the automatic stay. It stops any your creditors from trying to collect their debt. Contact Flint Bankruptcy Attorney Terry Bankert 810-235-1970 or through his web page at <br />
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BANKRUPTCY CREDIT REPAIR. It is often better to take this step then work to rebuild your credit. Contact Flint Bankruptcy Attorney Terry Bankert 810-235-1970 or through his web page at <a href="http://www.attorneybankert.com/">http://www.attorneybankert.com/</a><br />
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BANKRUPTCY RECORDS are public information. Get you pleading done right. Contact Flint Bankruptcy Attorney Terry Bankert 810-235-1970 or through his web page at <br />
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BANKRUPTCY AND STUDENT LOANS will not cause their elimination but a form of bankruptcy will give you breathing space. Contact Flint Bankruptcy Attorney Terry Bankert 810-235-1970 or through his web page at <br />
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CHAPTER SEVEN BANKRUPTCY is a clean start. Contact Flint Bankruptcy Attorney Terry Bankert 810-235-1970 or through his web page at <br />
<span lang="EN">BANKRUPTCY 13 is a payment plan that gives you breathing room and stops repossessions and home foreclosures. Contact Flint Bankruptcy Attorney Terry Bankert 810-235-1970 or through his web page at <br />
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Do you want INFORMATION ABOUT BANKRUPTCY Contact Bankruptcy lawyer Terry Bankert 235-1970.Contact Flint Bankruptcy Attorney Terry Bankert 810-235-1970 or through his web page at </span><a href="http://www.attorneybankert.com/"><u><span style="color: blue;"><span lang="EN">http://www.attorneybankert.com</span></span></u></a></span><a href="http://www.attorneybankert.com/"><u><span style="color: blue;"><span lang="EN">http://www.attorneybankert.com</span></span></u></a></span><a href="http://www.attorneybankert.com/"><u><span style="color: blue;"><span lang="EN">http://www.attorneybankert.com</span></span></u></a></span><a href="http://www.attorneybankert.com/"><u><span style="color: blue;"><span lang="EN">http://www.attorneybankert.com</span></span></u></a></span><a href="http://www.attorneybankert.com/"><u><span style="color: blue;"><span lang="EN">http://www.attorneybankert.com</span></span></u></a></span><a href="http://www.attorneybankert.com/"><u><span style="color: blue;"><span lang="EN">http://www.attorneybankert.com</span></span></u></a></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-3826365535436401382.post-76976668808551925892011-03-27T17:23:00.000-07:002013-01-10T10:48:14.899-08:00CAN I FILE FOR BANKRUPTCY<div dir="ltr" style="text-align: left;" trbidi="on">
<span lang="EN"> BANKRUPTCY TRUSTEE has a duty to take your property and assets if you do not file correctly. Contact Flint Bankruptcy Attorney Terry Bankert 810-235-1970 or through his web page at <br />
<span lang="EN">You ask CAN I FILE FOR BANKRUPTCY? Many rely on an expert to answer that question. Contact Flint Bankruptcy Attorney Terry Bankert 810-235-1970 or through his web page at </span><a href="http://www.attorneybankert.com/"><u><span style="color: blue;"><span lang="EN">http://www.attorneybankert.com</span></span></u></a></span><a href="http://www.attorneybankert.com/"><u><span style="color: blue;"><span lang="EN">http://www.attorneybankert.com</span></span></u></a></div>
Unknownnoreply@blogger.com0