Confirmation of liquidating plan bankruptcy farmer
The Supreme Court affirmed the lower court decision that the Chapter X Trustee lacked the requisite standing to prosecute these claims during the bankruptcy case. was whether a post-confirmation liquidating trustee of a liquidation trust created under a confirmed plan can prosecute creditors’ direct claims (as opposed to estate claims) assigned to it as provided in the plan. On review, the Seventh Circuit first addressed the flaws in BNYM’s jurisdictional objections, noting that many of the investors were not residents of New York and their claims exceeded ,000, thus providing a basis for diversity jurisdiction.
In , the Supreme Court identified three reasons for not allowing a bankruptcy trustee to assert the third-party claims of individual investors: First, the court held that the Bankruptcy Act of 1898 did not give a trustee such a power, nor did it give bankruptcy judges the power to transfer third-party claims to a trustee. On appeal, BNYM raised two threshold objections, arguing that the trustee had engaged in collusive maneuvering of jurisdiction and that the trustee lacked authority to pursue the litigation. The Court also noted that the investors could have sued BNYM as a class.
There are exceptions in emergency situations or where the U. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. A voluntary petition must adhere to the format of Form 1 of the Official Forms prescribed by the Judicial Conference of the United States.
Such debtors must file: a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified education or tuition accounts.11 U.
These issues must be addressed prior to the confirmation of a plan.
After a plan is confirmed providing for a liquidation trust, the trust’s provisions and rights created thereunder will control.
The fees must be paid to the clerk of the court upon filing or may, with the court's permission, be paid by individual debtors in installments.
416 (1972) apply to the activities of a post-confirmation liquidating trustee appointed in a liquidating trust created by a confirmed plan of reorganization.Following the plan effective date, BNYM objected to the trustee’s pursuit of the assigned third-party claims on two grounds: (i) the assignments were a collusive attempt to manufacture jurisdiction and (ii) the trustee lacked authority under the Code to pursue the investors’ claims.case dealt with a Chapter X Trustee’s power during a bankruptcy case to assert, on behalf of investors, claims of misconduct by the Indenture Trustee. Second, the court reasoned that, as the damage suffered by the investors was as much the fault of the debtor as of the third-party defendant, the debtor might have had the obligation to reimburse the third-party defendant for any amounts the trustee recovered. The final installment must be paid not later than 120 days after filing the petition. 1006(b) limits to four the number of installments for the filing fee. Debtors should be aware that failure to pay these fees may result in dismissal of the case.