IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF CALIFORNIA
|DO NOT PUBLISH
This case disposition has no value as precedent and is not intended for publication. Any publication, either in print or electronically, is contrary to the intent and wishes of the court.
WESLEY H. ARCHER, No. 92-12341
Memorandum of Decision
In this Chapter 7 case, the trustee seeks to abandon a parcel of real property because he is
unable to sell it for enough to realize any benefit to the estate. Only the debtor has objected;
he does not argue that abandonment is bad for the estate, but only that it is bad for him
personally. If the estate does not sell the property, then it will not have to pay the associated
capital gains taxes for him.
It is very doubtful that the debtor has any standing to be heard at all, as there is no surplus
for him in this case. A hopelessly insolvent debtor does not have standing regarding matters
affecting the size of the estate. Matter of Fondiller
, 707 F.2d 441, 442 (9th Cir.1983).
Even if the objection is considered, it has no merit. In In re Johnson
, 49 F.3d 538 (9th
Cir.1995), the court specifically held that abandonment is proper without regard to the tax
consequences to the debtor. The payment of capital gains tax by an estate is a beneficial
happenstance which occurs occasionally to the benefit of the debtor. It is not a right of the
debtor, nor may the debtor compel the estate to pay his taxes by objecting to abandonment.
For the foregoing reasons, the objection of the debtor will be overruled and the trustee's
motion to abandon will be granted. Counsel for the trustee shall submit an appropriate form
of order forthwith.
Dated: August 3, 1995 _______________________