Bankr. No.:
02-50012
Chapter:
7
Date of Decision:
June 2, 2005
Issue:
Whether in making his distribution to unsecured creditors, the chapter 7 trustee could distinguish between those unsecured creditors whose timely filed claims arose out of service contracts with Debtor and those unsecured creditors whose timely filed claims arose out of other dealings with Debtor?
Ruling:
Under 11 U.S.C. ยง 726(b), any distribution to unsecured creditors who timely filed proofs of claim, regardless of the basis of their claims, must be made on a pro rata basis.
Full Bankruptcy Court Decision:
