Frank v. Michigan Ex Rel. Michigan Unemployment Agency Department of Consumer & Industry Services

OPINION AND ORDER AFFIRMING DECISION OF BANKRUPTCY COURT

ROBERTS, District Judge.

I

This matter is before the Court on an appeal by the State of Michigan Unemployment Agency (“Appellant” or “UA”) from a decision by the Bankruptcy Court (“BC”). The central issue is whether the BC erred in concluding that the UA’s pre-petition liens on Debtor’s property do not attach to preference proceeds recovered by Trustee post-petition. For the reasons explained below, the Court AFFIRMS the decision.

II

Thompson Boat Co. (“Debtor”) filed a Chapter 11 petition on May 19, 1993. The case was converted to Chapter 7…