(6th Cir. B.A.P. April 17, 2017)
The Sixth Circuit B.A.P. reverses the bankruptcy court’s finding that a personal injury claim was not abandoned, but affirms the finding that a second claim was not abandoned. The debtor listed the personal injury claim in his schedules, but not the second claim. The trustee filed a notice of no distribution, noting that the personal injury claim was not abandoned. The case was closed, and the trustee later moved to reopen the case to settle the personal injury claim. The court holds that because the trustee did not obtain an order preventing abandonment upon closing the case, the claim was abandoned under 11 U.S.C. § 554. The bankruptcy court correctly held that the unscheduled claim was not automatically abandoned upon closing the case pursuant to § 554(d). Opinion below.
Attorney for Debtor: Gino Pulito
Attorney for Trustee: Lauren A. Helbing
Author: Matt Lindblom