Roy M. Terry, Jr., VSB No.17764

SANDS ANDERSON PC

P.O. Box 2188

Richmond, Virginia 23218-2188

Telephone: 804.648.1636

 Chapter 7 Trustee

UNITED STATE BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

Richmond Division

In re:

CATHY MICKENS, Case No. 19-31323-KLP

Chapter 7

Debtor.

TRUSTEE’S MOTION FOR AUTHORIZATION TO OPERATE BUSINESS

OF THE DEBTOR ON A LIMITED BASIS FOR A LIMITED PERIOD

COMES NOW Roy M. Terry, Jr., Chapter 7 Trustee (the "Trustee") for the bankruptcy 

estate of Cathy Mickens (the "Debtor"), by counsel, and pursuant to 11 U.S.C. § 721, and files his 

Motion for Authorization to Operate the Business of the Debtor on a Limited Basis and for a 

Limited Period (the "Motion"), and in support thereof respectfully states as follows:

1. On March 13, 2019, the Debtor filed a voluntary petition seeking relief under 

Chapter 7 of the United States Bankruptcy Code.

2. Roy M. Terry, Jr. was appointed interim Chapter 7 Trustee. The § 341 meeting of 

creditors is scheduled to be held April 22, 2019 at 10:00 a.m.

3. Pursuant to Debtor's schedules as filed, the Debtor has an interest in real property 

located at 11443 145th Street, Jamaica, New York 11436 (the "Property").

4. Schedule A/B indicates the value of the Property to be $374,000.00. Schedule D 

also indicates that the Property is secured by a deed of trust benefitting Mr. Cooper as mortgage 

lender with a loan balance of $261,684.40.

5. Although Schedule A also declares the Property to be Debtor's primary residence, 

the Property was actually leased prepetition by the Debtor to Crystal Dowe and Mwanza 

Goulding (the "Lease"). The Lease is understood to expire in June, 2020, and requires that the 

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tenant make monthly rental payments of $1,600.00 plus pay utilities. On information and belief, 

rent payments are current through March, 2019.

6. Debtor is not current in her mortgage payments to Mr. Cooper. On information 

and belief, Debtor's last payment to Mr. Cooper was made on December 14, 2018, in the amount 

of $1,896.43.

7. The Trustee has been contacted by BK Global as agent for Mr. Cooper. BK 

Global proposes that the Trustee make use of its services to liquidate the Property, subject to a 

minimum guaranteed carve-out for the bankruptcy estate.

8. Subject to verification of the Property's condition and value, the Trustee has 

interest in liquidating the Property for the benefit of creditors. Based upon the Schedule A value 

of $374,000.00 and the Schedule D mortgage payoff of $261,684.40, the Property has significant 

equity over and above the payoff to Mr. Cooper. While appreciative of the mortgage lender's 

offer, the Trustee is more interested in the apparent equity than in the proposed, guaranteed carveout.

9. The employment of a sales agent and a sale motion will come later. At present, the 

Trustee seeks authority from the Court to collect the monthly rents from the Property 

commencing with April, 2019, and—to the extent possible—then make the monthly mortgage 

payments to Mr. Cooper. The Trustee understands that these acts may constitute operating a 

business.

10. Section 721 provides that:

The court may authorize the trustee to operate the business of the 

debtor for a limited period, if such operation is in the best interest of the 

estate and consistent with the orderly liquidation of the estate.

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11 U.S.C. § 721. Such authorization is appropriate where the interim operation of the Debtor’s 

business is to complete work in progress if the final product will realize a net return greater than 

would the component parts. See 2 COLLIERS ON BANKRUPTCY ¶ 721.01[1], at 721-3 (Alan N. 

Resnick & Henry J. Sommer eds., 15th ed. rev. 2008).

11. The Trustee has determined, in the exercise of his business judgment, that the 

limited operation of the Debtor’s business--for the purpose of collecting rents from the lease of 

the Property, and then applying those rents collected against the monthly debt service obligation 

to the mortgage lender--is in the best interests of the estate.

WHEREFORE, the Trustee respectfully requests that the Court enter an order, 

substantially in the form attached hereto, authorizing him to collect tenant rents paid pursuant to 

the Lease, and then to apply those rents against the monthly debt service obligation to Mr. Cooper 

as mortgage lender, together with such other and further relief as the Court deems just and 

proper.

Respectfully submitted, this 4

th of April, 2019

.

/s/ Roy M. Terry, Jr.

Roy M. Terry, Jr., VSB No. 17764

SANDS ANDERSON PC

P.O. Box 2188

Richmond, VA 23218-2188

Telephone: 804.648.1636

 Chapter 7 Trustee

ND4852-5523-8544

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CERTIFICATE OF SERVICE

I hereby certify that on this 4

th day of April, 2019, a true and correct copy of the foregoing 

motion was sent electronically through the Court's electronic filing system and/or first-class mail, 

postage-prepaid, to:

Robert B. Van Arsdale

Assistant U.S. Trustee

Office of the U.S. Trustee

701 E. Broad St., Suite 4304

Richmond, VA 23219

Cathy Mickens

2621 Reba Court

Glen Allen, VA 23060

 Debtor

Veronica D. Brown-Moseley, Esquire

Boleman Law Firm, P.C.

P.O. Box 11588

Richmond, VA 23230

 Counsel for the Debtor

Crystal Dowe and Mwanza Goulding

11443 145th Street

Jamaica, New York 11436

Gene T. Anton, Esquire

Law Office of Gene T. Anton

775 Park Ave, Suite 255

Huntington, NY 11743

 Counsel for Crystal Dowe and Mwanza Goulding

/s/ Roy M. Terry, Jr.

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Proposed Order

Roy M. Terry, Jr., VSB No.17764

SANDS ANDERSON PC

P.O. Box 2188

Richmond, Virginia 23218-2188

Telephone: 804.648.1636

 Chapter 7 Trustee

UNITED STATE BANKRUPTCY COURT

EASTERN DISTRICT OF VIRGINIA

Richmond Division

In re:

CATHY MICKENS, Case No. 19-31323-KLP

Chapter 7

Debtor.

ORDER GRANTING MOTION FOR AUTHORIZATION

TO OPERATE BUSINESS OF THE DEBTOR

THIS MATTER is before the Court on the Chapter 7 Trustee's Motion for Authorization 

to Operate the Business of the Debtor on a Limited Time (the "Motion"). The Trustee seeks 

authorization to operate the Debtor's business by collecting tenant rents paid pursuant to the Lease 

of Debtor's property located at 11443 145th Street, Jamaica, New York 11436 (the "Property"), 

and then applying those rents against the monthly debt service obligation to Mr. Cooper as 

mortgage lender secured against the Property. The Trustee further asks that the authorization 

continue until the Property is either sold or abandoned by the Trustee. Upon consideration of the 

Motion, the Court finds that the described operation of the business is in the best interests of the 

Debtor's estate. Therefore, it is hereby

ORDERED that the Trustee is authorized to collect tenant rents paid pursuant to the lease 

of the Property, and then to apply those rents against the monthly debt service obligation to Mr. 

Cooper as mortgage lender secured against Debtor's property.

Date:

KEITH L.PHILLIPS

UNITED STATES BANKRUPTCY COURT

Entered on Docket: 

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I ask for this:

/s/ Roy M. Terry, Jr.

Roy M. Terry, Jr., VSB No. 17764

SANDS ANDERSON PC

P.O. Box 2188

Richmond, VA 23218-2188

Telephone: 804.648.1636

 Chapter 7 Trustee

LOCAL RULE CERTIFICATION

Pursuant to Local Rule 9022-1, I certify that all necessary parties have endorsed the 

foregoing Order.

/s/ Roy M. Terry, Jr.

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PARTIES TO RECEIVE COPIES:

Cathy Mickens

2621 Reba Court

Glen Allen, VA 23060

 Debtor

Veronica D. Brown-Moseley, Esquire

Boleman Law Firm, P.C.

P.O. Box 11588

Richmond, VA 23230

 Counsel for the Debtor

Roy M. Terry, Jr., Esquire

SANDS ANDERSON PC

P.O. Box 2188

Richmond, VA 23218-2188

 Chapter 7 Trustee

Robert B. Van Arsdale, Esquire

Assistant U.S. Trustee

701 East Broad Street, Suite 4304

Richmond, VA 23219

Crystal Dowe and Mwanza Goulding

11443 145th Street

Jamaica, New York 11436

Gene T. Anton, Esquire

Law Office of Gene T. Anton

775 Park Ave, Suite 255

Huntington, NY 11743

 Counsel for Crystal Dowe and Mwanza Goulding

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