UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF COLORADO
In re: ASHLEY ALBRIGHT,
Debtor, Case No. 01-11367
ABC, Chapter No. 7, 2003 Bankr. LEXIS 291
April 4, 2003, Decided
For Ashley Albright, Debtor: James H. Hahn,
Greenwood Village, CO.
Harvey Sender, Trustee: Charles F. McVay,
Denver, CO.
DISPOSITION:
Trustee's Motion to appoint Bob Karls as real
estate broker for the Trustee granted.
OPINION BY:
A. Bruce Campbell, U.S. Bankruptcy Judge.
OPINION AND ORDER ON MOTION TO
ALLOW TRUSTEE TO TAKE ANY AND
ALL NECESSARY ACTIONS TO
LIQUIDATE PROPERTY OWNED BY
WESTERN BLUE SKY LLC
THIS MATTER is before the Court on the (1)
Motion to Allow Trustee to Take Any and All
Necessary Actions to Liquidate Property Owned
by Western Blue Sky LLC ("Motion
to
Liquidate");
(2) Motion
to Appoint
and
Compensate Bob Karls as Real Estate Broker to
the Trustee; and (3) Debtor's Response to
Trustee's Motion to Retain Realtor and Liquidate
LLC Property. Following a hearing on February 4,
2003, the parties agreed to submit the matter on
briefs.
Ashley Albright, the debtor in this Chapter 7 case
("Debtor"), is the sole member and manager of a
Colorado
limited
liability company named
Western Blue Sky LLC.1 The LLC owns certain
real property located in Saguache County,
Colorado (the "Real Property"). The LLC is not a
debtor in bankruptcy.
The Chapter 7 Trustee contends that because the
Debtor was the sole member and manager of the
LLC at the time she filed bankruptcy, he now
controls the LLC and he may cause the LLC to
sell the Real Property and distribute the net sales
proceeds to his bankruptcy estate.2 The Debtor
maintains that, at best, the Trustee is entitled to a
charging order3 and cannot assume management
of the LLC or cause the LLC to sell the Real
Property.
Pursuant
to
the Colorado
limited
liability
company statute, the Debtor's membership interest
constitutes the personal property of the member.
Upon
the Debtor's bankruptcy
filing,
she
effectively transferred her