Terry v. Standard Insurance (In Re Terry)

MEMORANDUM OPINION

JERRY W. VENTERS, Bankruptcy Judge.

On July 21, 2010, the Court entered a declaratory judgment in favor of the Debt- or/Plaintiff, Joseph Terry, finding that Defendant Standard Insurance Company could not recoup $45,316.54 in pre-petition benefit “overpayments” from the Debtor’s future disability payments. The Court denied Standard’s right of recoupment primarily on the basis of 11 U.S.C. § 502(h), 1 which the Court interpreted as limiting Standard to filing a general unsecured claim against the Debtor’s bankruptcy estate. On January 28, 2011, the Bankruptcy Appellate Panel…