Carson v. Logan

Order Kenneth Jerry Carson moves for counsel and for in forma pauperis status on appeal from the district court's order dated March 19, 1992, affirming the bankruptcy court's denial of in forma pauperis status on appeal, and directing Carson to pay the required fee of $105. This appeal has been referred to a panel of the court pursuant to Rule 9(a), Rules of the Sixth Circuit. Upon consideration, this panel unanimously agrees that oral argument is not needed. Fed. R. App. P. 34(a). Carson, the debtor in a Chapter 7 proceeding, filed an objection to the bankruptcy trustee's notice of a proposed sale of real estate. On December 31, 1991, the bankruptcy court struck the objection from the record on the grounds that Carson, as an insolvent debtor, is not a party in interest who may object to the allowance of claims against the estate. See In re Coleman, 131 Bankr. 59, 60 (Bankr. N.D. Tex. 1991). Carson appealed and sought IFP status in the district court. The court remanded the case to the bankruptcy court for a certification of good faith. Upon remand, the bankruptcy court found the existence of good faith but concluded that Carson was not entitled to IFP status because he had recently received a $52,500 civil suit settlement during the pendency of the bankruptcy case. The bankruptcy court also noted Carson's failure to disclose his receipt of the settlement proceeds in his affidavit of indigency.