Tawny S Kilgo

1 The sale is a "short sale" in which the proceeds of the sale
will be insufficient to pay the encumbrances in full. The secured
lender has agreed to the sale under certain conditions, but there
will be no proceeds to benefit the estate.
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF NORTH CAROLINA
RALEIGH DIVISION
IN RE:
TAWNY S. KILGO
DEBTOR
CASE NO.
05-00406-5-ATS
ORDER DENYING MOTION TO SELL PROPERTY
The matter before the court is the debtor’s motion to sell
property. A hearing took place in Raleigh, North Carolina on
October 31, 2005.
Tawny S. Kilgo filed a petition for relief under chapter 7 of the
Bankruptcy Code on February 4, 2005, and Gregory B. Crampton was
appointed trustee. Ms. Kilgo filed a motion to sell her residence, to
which the trustee objected because the estate would incur liability
with no corresponding benefit.1 At the same time, the trustee filed a
motion to abandon the property, but the response time has not expired
on the motion to abandon, and the property remains property of the
estate.
The motion to sell will be denied. A trustee is authorized by 11
U.S.C. § 363 to sell property, but there is no provision of the
Bankruptcy Code that authorizes the court to approve sales by chapter 7
debtors. The court does not have the authority to allow the debtor to
sell the property over the objection of the trustee.
Based on the foregoing, the motion to sell is DENIED.
SO ORDERED.
DATED: October 31, 2005
Case 05-00406-5-ATS Doc 56 Filed 10/31/05 Entered 11/01/05 12:11:36 Page 1 of 1