(6th Cir. Jan. 5, 2015)
The Sixth Circuit affirms the bankruptcy court’s order dismissing the trustee’s complaint for turnover of a good faith deposit. The debtor was the assignee of a real property purchase agreement with the cabinet, pursuant to which the debtor could purchase certain real property by a certain date. A good faith deposit had been made. The debtor filed a chapter 7 bankruptcy petition a few days before the deadline to purchase, and the trustee then sought turnover of the deposit. The court holds that the trustee does not have a right to demand turnover of the deposit because it is not part of the bankruptcy estate. The debtor did not have a present right to the deposit at the time the bankruptcy was filed. Opinion below.
