Harlan v. Nebraska Alliance Realty Company (In re Harlan)

(Bankr. S.D. Ind. Oct. 19, 2017)

The bankruptcy court grants summary judgment in favor of the county in this § 542 turnover action. The case involves a matter of first impression regarding a Chapter 13 debtor’s rights in the tax surplus fund provided for in Ind. Code § 6-1.1-24-7. The court determines the debtor had two options as of the petition date: (1) exercise the right of redemption by the statutory deadline or (2) allow the redemption period to expire, divest herself of the property, and then make a claim against the tax surplus fund. As of the petition date, the debtor only holds a contingent interest in the tax surplus fund, and thus an order directing turnover of the fund is inappropriate. Opinion below.

Judge: Moberly

Attorney for Debtor: Steven P. Taylor

Attorney for Defendants: Scott R. Richards, Katherine A. Starks; Douglas J. DeGlopper

2017-10-19 – in re harlan

Author: Matt Lindblom