Bankr. No.:
09-10085
Adv. No.:
10-1004
Chapter:
7
Date of Decision:
October 5, 2010
Issue:
Whether the Court had jurisdiction over an adversary proceeding in which one creditor sought a determination that its liens against certain sale proceeds that had been paid to another creditor were senior to that creditor's liens against the same proceeds?
Ruling:
No. The adversary proceeding did not "arise under" title 11, because it did not implicate any provision of title 11. It did not "arise in" a case under title 11, because the underlying dispute was between two creditors and did not involve either the debtors or the chapter 7 trustee and because the proceeds were no longer property of the estate. Finally, it was not "related to" a case under title 11, because the outcome could not have any conceivable effect on the debtors or the bankruptcy estate.
Full Bankruptcy Court Decision: