In re Pasley, No. 18-8048 (6th Cir. 2019)Annotate this Case
Debtor is the sole member of REN, a Kentucky limited liability company that owns Louisville real estate. The Chapter 7 Trustee sought authority to sell that property, asserting that Debtor’s interest in REN was estate property under 11 U.S.C. 541(a)(1), deemed to have been assigned to Trustee. The bankruptcy court held two hearings, both times explaining that Trustee stands in Debtor’s shoes as the sole member of REN and has whatever authority Debtor would have to sell the property, then granted Trustee’s motion. The Sixth Circuit Bankruptcy Appellate Panel dismissed an appeal. There is no evidence that Debtor is a “person aggrieved” by the Sale Order. REN—not Debtor—owns the real estate. Debtor failed to explain how its sale would diminish his property, increase his burdens, or impair his rights and lacks the requisite pecuniary interest in the real estate sale contemplated in the Sale Order. Debtor did not claim an exemption in his membership interest in REN and failed to demonstrate that his success on appeal would otherwise entitle him to a distribution of surplus assets from his chapter 7 estate.