Michael B. White v. Collene K. Corcoran, Trustee, et al.
JusticiabilityDoctri
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?
QUESTIONS PRESENTED 1. Did the 6 Circuit Court of Appeals err when it determined that a Chapter 11 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? 2. Did the 6t4 Circuit err when it determined a Chapter 7 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? 3. Did the 6t 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? To all Debtor-petitioner answers: Yes. All others answer: No. i