Bankruptcy

RECENT NORTHERN DISTRICT OF TEXAS BANKRUPTCY CASE DECISIONS

By J. Michael McBride

In re Michael S. Polly, Case No. 08-41506-DML-7. The issue in this case was whether a debtor in a Chapter 13 case has the absolute right to dismiss that case, even where a creditor’s motion to convert to Chapter 7 is pending. Despite the history in the 5th Circuit of denying that such a dismissal is made mandatory by the provisions of 11 U.S.C. § 1307, Judge Michael Lynn found that “section 1307(b) provides a chapter 13 debtor with an absolute right to dismiss his or her case at any time, even if a motion to convert the case to a chapter 7 is pending.”

You can read Judge Lynn's full opinion at:
http://www.txnb.uscourts.gov/opinions/pdf/polly.pdf

In re Meredith Corporation v. Home Interiors and Gifts, Inc., Adversary No. 08-03125. Judge Barbara Houser found that a creditor’s claim was an administrative expense where a licensing agreement with the creditor allowed the debtor to use certain trademarks (the “Better Homes and Gardens” brand name) in its catalogs. The catalogs were printed pre-petition, but the debtor accepted orders from the catalogs post-petition. Therefore, since the debtor realized post-petition revenue from the goods bearing the Better Homes & Gardens brand name, the creditor’s claim was treated as an administrative expense.

You can read Judge Houser's full opinion at:
http://www.txnb.uscourts.gov/opinions/pdf/2008-3125-19.pdf

Kathleen Munden

Full post as published by Texas Lawyer Blog on October 13, 2008 (boomark / email).