ee4c3a84_United_States_Bankruptcy_Court__Summary
[Date Filed] 10/02/2014 [Case Number] 10-60275 [PDF] View [Summary] 
In re: Altmeyer Summary: Debtor David Altmeyer moved to sell a parcel of commercial real estate free and clear of liens pursuant to 11 U.S.C. § 363(f). When the debtor filed his Chapter 13 petition on May 17, 2010, the property was encumbered by a first mortgage in favor of Regions Bank (“Regions”), a second mortgage in favor of USAA Federal Savings Bank (“USAA”) and several real estate tax liens in favor of the county taxing authority. Although the confirmed Chapter 13 plan provided for surrender of the property to Regions, due to the property’s poor condition, Regions refused to take possession. In an effort to relieve himself of the ongoing burden of maintaining the property, the debtor sought to sell the property free and clear of creditors’ liens. However, because the proposed purchase price was substantially less than the value of the liens against the property, second mortgage holder USAA objected to the sale. In denying the debtor’s motion, the Court held that it did not have the authority to authorize a sale free and clear of liens after plan confirmation because the property was no longer property of the bankruptcy estate. The Court further concluded that property should not be sold free and clear of liens unless the proposed sales proceeds are sufficient to fully compensate the secured lienholders and produce some equity for the benefit of the debtor’s bankruptcy estate.
Opinions | Southern District of Illinois | United States Bankruptcy Court
Summary