IN RE MARDIROS HAIG MIHRANIAN, Debtor. SAM S. LESLIE, Chapter 7 Trustee, Appellant, v. HAIG LEO MIHRANIAN; MICHAEL MIHRANIAN; SUSAN CHOBANIAN; TAKOUHIE BARTAMIAN; MEDICAL CLINIC AND SURGICAL SPECIALTIES OF GLENDALE, INC., Appellees., 937 F.3d 1214

Summary

HOLDINGS: [1]-The bankruptcy court properly denied a Chapter 7 trustee's motion to substantively consolidate a debtor's estate with the estates of various non-debtors, including his ex-wife, sons, medical business, and office manager, because a party moving for substantive consolidation was required to give notice of the motion to creditors of a putative consolidated non-debtor, and the trustee failed to give such notice; [2]-The Bankruptcy Appeals Panel did not clearly err in concluding that the trustee failed to adequately research and serve the non-debtors' creditors where he relied on information for the ex-wife that was several years old, did not know or ask whether the office manager had any creditors, and made no attempts to discover the sons' creditors.