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Craig L. White & Vonnie D. White, Ch. 7, BK12-42639 (Feb. 12, 2014)

The bankruptcy trustee and a judgment creditor proposed a compromise by which the creditor’s proof of claim would be allowed, the creditor would be paid a portion of its claim from the sale of certain assets, and the creditor’s counsel would represent the trustee in litigation to recover certain other assets for the estate. The bankruptcy court denied the motion to approve this agreement because it implicated a variety of legal issues that had not been thoroughly considered or resolved before the settlement was reached. The proposed compromise would adversely affect other creditors and the debtors and was premature.

Wednesday, February 12, 2014