23 B 12544
Following examinations it requested under Fed. R. Bankr. P. 2004, a creditor asked the court to expand the subchapter V trustee’s duties. The Debtors opposed the request. HELD: 11 U.S.C. § 1183(b)(2) permits the expansion of a subchapter V trustee’s powers at a court’s discretion and only if the court finds that cause exists to do so. In this case, there were no allegations of intercompany claims, or significant questions regarding the Debtors’ true financial condition, their management of the estate or the accuracy of their disclosures. The creditor did not explain why it could not reach a conclusion following its own investigation as authorized under Rule 2004. Additionally, the subchapter V trustee raised no concerns with the Debtors’ conduct, cooperation or disclosures. Expanding the subchapter V trustee’s duties under these circumstances would burden the plan process and undermine the purpose of subchapter V, so the court denied the motion.
Judge:
Date:
Friday, November 22, 2024