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KEARNEY v. UNSECURED CREDITORS COMMITTEE

No. 19-2209.

987 F.3d 1284 (2021)

Victor P. KEARNEY, Appellant, v. UNSECURED CREDITORS COMMITTEE, Kevin Yearout, United States Trustee, and Louis Abruzzo and Benjamin Abruzzo, Trustees of the Mary Pat Abruzzo Kearney Testamentary Trusts B and C, Appellees.

United States Court of Appeals, Tenth Circuit.

FILED February 24, 2021.

Attorney(s) appearing for the Case

Stacy R. Obenhaus , Marcus A. Helt , Debbie E. Green , Foley & Lardner LLP, Dallas, Texas, for Appellant.

Thomas D. Walker and Chris W. Pierce , Walker & Associates, P.C., Albuquerque, New Mexico, for Official Committee of Unsecured Creditors; Paul M. Fish and Spencer L. Edelman , Modrall, Sperling, Roehl, Harris & Sisk, P.A., Albuquerque, New Mexico, for Louis Abruzzo and Benjamin Abruzzo, as Trustees of the Mary Pat Abruzzo Kearney Testamentary Trusts B and C; and James Askew, Askew& White, LLC, Albuquerque, New Mexico, for Kevin Yearout.

Before KELLY, SEYMOUR, and MATHESON, Circuit Judges.

Victor P. Kearney was the lifetime income beneficiary of two spendthrift trusts when he filed for bankruptcy in 2017. The United States Trustee's office appointed an unsecured creditors committee ("UCC") which proposed a reorganization plan contemplating a one-time trust distribution to pay off Mr. Kearney's debts. After...

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