The bankruptcy court granted the Chapter 7 trustee’s motion to sell residential real estate over the objection of the debtor (who lacked standing) and several holders of construction liens on the property.

While the mortgage-holder consented to the sale, a judgment lien creditor neither consented nor objected. The court noted, first, failure to object implies consent, and second, a §363 sale can occur if the non-consenting entity’s interest is in bona fide dispute. Here, the debtor is vigorously disputing the validity of the underlying judgment, so the creditor’s interest is in bona fide dispute. Even if the creditor’s implied consent is insufficient under § 362(f)(2), the sale is independently authorized under § 363(f)(4).

Likewise, the subcontractors’ interests are also objectively subject to a bona fide dispute because the debtor was not authorized to incur debt to complete construction of the house. Moreover, the post-petition filing of the construction liens violated the automatic stay, which may render them void or voidable.

The court also ruled that, contrary to the assertion of one of the creditors, there is indeed a benefit to the estate from the sale because the mortgage holder has agreed to a carve-out for unsecured creditors and because certain administrative expenses can be surcharged against the sale proceeds under § 506(c).

Finally, the court addressed the debtor’s argument that the Chapter 7 trustee is serving without a sufficient bond. The U.S. Trustee is responsible for determining the amount and sufficiency of a case trustee’s bond under §322(b) and the current bond is satisfactory to the U.S. Trustee. The court has little tolerance for the debtor’s “misguided and ill-conceived” efforts to impede the trustee and avoid liquidation of estate assets.