No. 18-9184

Michael B. White v. Collene K. Corcoran, Trustee, et al.

Lower Court: Sixth Circuit
Docketed: 2019-05-07
Status: Denied
Type: IFP
Response WaivedIFP
Tags: bankruptcy-code-11-usc-506-c bankruptcy-code-11-usc-506(c) bankruptcy-conversion chapter-11 chapter-7 debtor-in-possession debtor-recovery debtor-rights preservation-costs recovery statutory-interpretation trustee-duties
Latest Conference: 2019-10-01
Question Presented (from Petition)

Did the 6th Circuit Court of Appeals err when it determined that a Chapter 11 debtor-in-possession loses all rights to recover under 11 USC 506(c) upon the case being converted to Chapter 7, including loss of recovery for $18,529.05 in preservation costs incurred from Chapter 11 petition to conversion?

Did the 6th Circuit err when it determined a Chapter 7 debtor-in-possession, who performed some of the duties of the Chapter 7 trustee, may not recover under §506(c) even though the bankruptcy court ordered debtor pay ad valorem taxes and other preservation expenses of $6,168.20, but would not order trustee to pursue recovery?

Did the 6th Circuit err in determining Petitioner did not prove he had a "colorable claim that would benefit the bankruptcy estate," thus Debtors could not directly seek recovery of preservation costs?

Question Presented (AI Summary)

Did the 6 Circuit Court of Appeals err when it determined that a Chapter 11 debtor-in-possession loses all rights to recover under 11 USC 506(c) upon the case being converted to Chapter 7, including loss of recovery for $18,529.05 in preservation costs incurred from Chapter 11 petition to conversion?

Docket Entries

2019-10-07
Petition DENIED.
2019-06-20
DISTRIBUTED for Conference of 10/1/2019.
2019-06-05
Waiver of right of respondent Frankenmuth Credit Union to respond filed.
2019-04-02
Petition for a writ of certiorari and motion for leave to proceed in forma pauperis filed. (Response due June 6, 2019)

Attorneys

Frankenmuth Credit Union
David L. PowersSmith, Martin, Powers, & Knier, P.C., Respondent
Michael B. White
Michael B. White — Petitioner