Boudreaux, Trustee v. Sheffield, 11-03008

Duprees transferred Peacock Avenue to Sheffield in 2004 for Love and Affection, reserving a life estate for the Duprees.
Duprees filed Chapter 13 in 2005, converted to Chapter 7; Scott Klosinski appointed as Chapter 7 Trustee for the Duprees.
Sheffield filed her own Chapter 13 in 2005, later converted to Chapter 7 in 2010; Todd Boudreaux appointed as Trustee.
Duprees received a Chapter 13 discharge in 2006; a consent order in 2007 allowed a $20,000 claim to Klosinski.
In 2008, Sheffield and the Duprees borrowed $38,400 from Bank of Eastman, pledging Peacock Avenue as collateral to pay Sheffield’s Chapter 13 plan, without court notice.
In 2009, Sheffield sold 1200 North Street for $21,000 without notice or court approval; Sheffield’s Chapter 13 converted to Chapter 7 in 2010 with discharge.”],

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether §363(h) sale of a co-owned property is permissible	Trustee seeks sale free of co-owners’ interests under §363(h) to benefit the estate	Co-owners’ interests and residence would be severely disadvantaged; sale not justified	Denied: burden not met; detriment to co-owners outweighs estate benefit
Whether the estate’s benefit from a sale outweighs the detriment to the co-owners under §363(h)(3)	Sale would significantly benefit the Sheffield estate by avoiding liens and clearing title	Detriment to elderly co-owners with no alternative housing outweighs potential estate gains	Denied: benefit not shown to outweigh detriment given occupants’ health and housing needs

In re Griffin, 123 B.R. 933 (Bankr. S.D. Fla. 1991) (considers detriment to co-owners in §363(h) analysis)
In re Gauthreaux, 206 B.R. 502 (Bankr. N.D. La. 1997) (factors including life expectancy and home suitability in 363(h) inquiry)
In re Zeialer, 320 B.R. 362 (Bankr. N.D. Ill. 2005) (denies sale where co-owner displacement would be severe; estate benefit minimal)