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667 B.R. 487
Bankr. N.D. Ga.
2025
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Background

  • The debtor, Randall E. Kimball, owns 100% of Stewart Street Academy & Childcare, LLC (the "LLC"), which holds title to real property in Carrollton, GA (the "Property").
  • The LLC was administratively dissolved in 2022 but continued to operate and enter into significant transactions, including a lease with TCABA Carrollton, LLC (the "Movant") in 2024.
  • The debtor filed for bankruptcy under Chapter 13 (later converted to Chapter 7) on August 5, 2024, listing both the LLC and the Property as interests in his schedules.
  • On August 6, 2024, the Property was sold at a nonjudicial foreclosure by the lender, despite the bankruptcy filing.
  • TCABA Carrollton, LLC moved for a "comfort order" to declare that the Property was not part of the bankruptcy estate and thus the foreclosure was not stayed.
  • The Chapter 7 trustee ultimately did not oppose Movant’s position, and the matter was decided on the parties’ briefs and arguments.

Issues

Issue Kimball’s Argument TCABA Carrollton, LLC’s Argument Held
Does a sole owner of an administratively dissolved Georgia LLC have an interest in real property titled in the LLC sufficient to include it in the bankruptcy estate? The LLC’s dissolution means the Property is now part of his estate, making the foreclosure void under the automatic stay. Property remains owned by the LLC, not by Kimball; administrative dissolution does not transfer property from LLC to member. No; the Property is not part of the debtor’s estate, so the foreclosure was not stayed.

Key Cases Cited

  • United States v. Whiting Pools, Inc., 462 U.S. 198 (defining the broad scope of property of the estate under federal law)
  • Butner v. United States, 440 U.S. 48 (state law governs the nature and extent of property interests in bankruptcy)
  • In re Albany Partners, Ltd., 749 F.2d 670 (actions violating the automatic stay are void in the Eleventh Circuit)
  • Williams v. PRK Funding Servs., Inc., 596 B.R. 375 (property owned by an LLC is not property of the bankruptcy estate of the owner)
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Case Details

Case Name: Randall E Kimball
Court Name: United States Bankruptcy Court, N.D. Georgia
Date Published: Feb 7, 2025
Citations: 667 B.R. 487; 24-11036
Docket Number: 24-11036
Court Abbreviation: Bankr. N.D. Ga.
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