Because the Code treats administrative claimants equally, the court sustained Chapter 7 trustee's § 726(b) objection to a request of Chapter 11 professionals who had disgorged funds to receive pro rata distribution from available Chapter 7 funds.
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Case was converted from Chap. 11. Court sustained Ch. 7 trustee's objection under section 726(b) to request of Ch. 11 professionals who had disgorged funds to receive pro rata distribution from available Ch. 7 funds. Code treats admin. claimants equally
Debtor's schedules showed equity in her home. She purchased that equity interest from the trustee. Her motion to vacate the sale when she discovered that judgment liens had eliminated that equity was denied because she should have known of the liens.
Judgment for defendant-creditor on debtor's complaint that creditor failed to sell collateral in a commercially reasonable manner. The opinion discusses the theory of commercial reasonableness of a sale under U.C.C. Revised Article 9 & Iowa law.
A debt cannot be excepted from discharge under § 523(a)(9) on a theory of vicarious liability. The statute requires the debtor to have operated the vehicle and caused the harm, so the parents of the adult impaired driver cannot be liable for the debt.
The court overruled debtor's objection to a proposed settlement between the trustee and a creditor after considering the probability of success, the difficulties of collection, the complexity of litigation, and the interests of creditors.
Prior to discharge, the Chapter 7 debtor did not move to avoid a judgment lien attached to her real estate. When the creditor then attempted to levy on the property, the court allowed the debtor to reopen the case in order to file a lien avoidance motion.
On reconsideration, the court held that the Chapter 13 debtors lacked standing to attempt to avoid as a preference a consensual purchase-money lien on their vehicle, in which they did not claim an exemption, under the provisions of § 522(h) and (g)(1).
A creditor holds a constructive trust on funds in debtor's account that are traceable to converted checks, so the trustee cannot compel turnover. The bank holding the funds has no subrogation right to them because the bank was liable for conversion.
The court ruled that if a motor vehicle was acquired for mixed personal and business use, then § 1325(a)(9) does not apply and the general statutory authorization for bifurcation of a claim into secured and unsecured portions under § 506 does apply.