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Case 12-27568-AJC Doc 88 Filed 05/17/13 Page 1 of 19

UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

MIAMI DIVISION
www.flsb.uscourts.gov



CASE NO.: 12-27568-AJC

Chapter 7

IN RE:

ERIK X. ALONSO






















Debtor./





TRUSTEE’S MOTION TO APPROVE STIPULATION FOR

COMPROMISE AND SETTLEMENT REGARDING VALUATION

AND REPURCHASE OF DEBTOR’S NON-EXEMPT ASSETS








Any interested party who fails to file and serve a written response to this motion
within 21 days after the date of service stated in this motion shall, pursuant to Local
Rule 9013-1(D), be deemed to have consented to the entry of an order in the form
attached to this motion. Any scheduled hearing may then be canceled.






Barry E. Mukamal, the Chapter 7 Trustee (“Trustee”) of the Bankruptcy Estate of ERIK

X. ALONSO (the “Debtor”), moves, pursuant to Bankruptcy Rule 9019, and Local Rules 9013-

1(D), to approve the Stipulation for Compromise and Settlement (the “Settlement”) entered into

by and between the Trustee and the Debtor. In support of this motion (the “Motion”), the

Trustee states as follows:

Background and Jurisdiction

1.

On July 23, 2012 (the “Petition Date”), the Debtor filed a voluntary petition

under Chapter 7 of the United States Bankruptcy Code. Barry E. Mukamal was appointed as

Chapter 7 Trustee.

2.

The Trustee has evaluated the Debtor’s schedules, examined the Debtor, and had

the Debtor’s assets appraised.

3.

As a result of the foregoing, the Trustee identified several items of non-exempt

assets including, but not limited to, personal property located at the Debtor’s residence,



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Case 12-27568-AJC Doc 88 Filed 05/17/13 Page 2 of 19

unaccounted for insurance proceeds, cash in bank accounts, personal property located at the

Debtor’s business, cash in corporate bank accounts, and fraudulent transfer claims against the

Debtor’s spouse (collectively, the “Property”).

4.

The Trustee asserts that the value of the Property exceeds the Debtors’ allowable

exemptions and further asserts that there may be bases to object to the Debtor’s discharge.

5.

6.

The Debtor disputes the Trustee’s valuation and his ability to object to discharge.

However, in an effort to avoid the high cost and uncertainty of litigation agreed to

enter into a settlement with the Trustee under which the Debtor will pay into the estate the sum

of $50,000. The details of the analysis and agreement are set forth in the Settlement Agreement

and Release, attached hereto as Exhibit “A”.

Legal Standard for Settlement

7.

Bankruptcy Rule 9019 (a) provides: “On motion . . . and after a hearing on notice

to creditors, the debtor . . . and to such other entities as the court may designate, the court may

approve a compromise or settlement.”1

8.

As this Court has previously found, “approval of a settlement in a bankruptcy

proceeding is within the sound discretion of the Court, and will not be disturbed or modified on

appeal unless approval or disapproval is an abuse of discretion.” In re Arrow Air, Inc., 85 B.R.

886, 891 (Bankr. S.D. Fla. 1988) (Cristol, J.) (citing Rivercity v. Herpel (In re Jackson Brewing

Co.), 624 F.2d 599, 602-03 (5th Cir. 1980); Anaconda-Ericsson, Inc. v. Hessen (In re Teltronics

Servs., Inc.) 762 F.2d 185, 189 (2d Cir. 1985); In re Prudence Co., 98 F. 2d 599 (2d Cir. 1938),

cert denied sub nom. Stein v. McGrath, 306 U.S. 636 (1939)).


1 Rule 9013-1(D) of the Local Bankruptcy Rules for the Bankruptcy Court for the Southern District of Florida
permits, inter alia, relief without a hearing for motions to approve settlement.



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Case 12-27568-AJC Doc 88 Filed 05/17/13 Page 3 of 19

9.

The test is whether the proposed settlement “falls below the ‘lowest point in the

range of reasonableness.’” Arrow Air, 85 Bankr. 891 (quoting Teltronics Servs., 762 F.2d 189;

Cosoff v. Roddman (In re W.T. Grant Co.), 699 F.2d 599, 608 (2d Cir.), cert denied, 464 U.S.

822 (1983)).

10.

According to the Unites States Eleventh Circuit Court of Appeals, when a

bankruptcy court decides whether to approve or disapprove a proposed settlement, it must

consider:

(a)
(b)
(c)

(d)









and delay necessarily attending it; and

reasonable views in the premises.

the probability of success in litigation;
the difficulties, if any, to be encountered in the matter of collection
the complexity of the litigation involved, and the expense, inconvenience

the paramount interest of the creditors and a proper defense to their

Wallis v. Justice Oaks, II, Ltd. (In re Justice Oaks II, Ltd.), 898 F.2d 1544 (11th Cir. 1990). See

Jackson Brewing, 624 F.2d 602, quoted in Arrow Air, 85 B.R. 891.

11.

The Trustee believes that the proposed settlement meets the standards set forth in

In re Justice Oaks II, and therefore, recommends approval of the settlement because it is fair and

reasonable, falls within the reasonable range of possible litigation outcomes, and is in the best

interest of the Estate because full settlement precludes any risks associated with litigation and

collection in this matter, increases the dividend available to creditors, and allows for a

distribution of sums and proceeds within a reasonable time.

12.

Pursuant to Local Rule 9013-1(D), a copy of the proposed Order is attached

hereto as Exhibit “B”.



WHEREFORE, Barry E. Mukamal, as Chapter 7 Trustee, respectfully requests this

Court enter an Order (1) granting the Motion; (2) approving the Stipulation; and (3) granting

such other and further relief as this Court deems just and proper.



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Certificate Of Service

I hereby certify that a true and correct copy of the foregoing was mailed via U.S. regular




mail (*or via e-mail through the Court’s BNC) on May 17, 2013 to all interested parties on the

attached service list.






Dated: May 17, 2013














394147

































Markowitz, Ringel, Trusty & Hartog, P.A.
9130 South Dadeland Boulevard, Suite 1800
Miami, FL 33156
Tel: (305) 670-5000
Fax: (305) 670-5011

By:/s/ Ross R. Hartog




ROSS R. HARTOG
Fla. Bar No.: 272360
[email protected]






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Case 12-27568-AJC Doc 88 Filed 05/17/13 Page 5 of 19

In re Erik X. Alonso.
Case No.: 12-27568-AJC


12-27568-AJC Notice will be electronically mailed to:

Bruce M. Boiko, Esq. on behalf of Creditor University Credit Union
[email protected], [email protected]

Jaclyn Gonzalez on behalf of Trustee Barry E Mukamal
[email protected], [email protected];[email protected]

Ross R Hartog on behalf of Trustee Barry E Mukamal
[email protected],
[email protected];[email protected];[email protected];[email protected];j
[email protected];[email protected]

Amber M Kourofsky on behalf of Creditor OneWest Bank, FSB
[email protected]

Barry E Mukamal
[email protected], [email protected]

Office of the US Trustee
[email protected]

Ashley Prager Popowitz on behalf of Creditor Bankruptcy Receivables Management
[email protected], [email protected]

Ashley Prager Popowitz on behalf of Plaintiff BRM Recovery Services Inc.
[email protected], [email protected]

Gavin N Stewart on behalf of Creditor OneWest Bank, FSB
[email protected]

Peter Wizenberg on behalf of Debtor Erik X Alonso
[email protected]

Peter Wizenberg on behalf of Defendant Erik X Alonso
[email protected]


12-27568-AJC Notice will be mailed via US Mail to:

Attached Matrix






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Label Matrix for local noticing BMW Bank of North America, Inc Bankruptcy Receivables Management
113C-1 c/o Ascension Capital Group c/o Ashley Prager Popowitz, Esq.
Case 12-27568-AJC POB 201347 2699 Stirling Rd # C 401
Southern District of Florida Arlington, TX 76006-1347 Ft Lauderdale, FL 33312-6598
Miami
Tue May 14 12:13:10 EDT 2013
OneWest Bank, FSB University Credit Union Bank of America
Gavin Stewart c/o Bruce M. Boiko, Esq. P.O. Box 851001
PO Box 23028 201 South Biscayne Blvd #1500 Dallas, TX 75285-1001
Tampa, FL 33623-2028 Miami, FL 33131-4328


CHASE Visa Discover Discover Bank
P.O. Box 15153 P.O. Box 6103 DB Servicing Corporation
Wilmington, DE 19886-5153 Carol Stream, IL 60197-6103 PO Box 3025
New Albany, OH 43054-3025


(p)INTERNAL REVENUE SERVICE IndyMac Mortgage Services IndyMac Mortgage Services
CENTRALIZED INSOLVENCY OPERATIONS 2900 Esperanza Crossing 2900 Esperanza Crossing
PO BOX 7346 IndyMac - 4 IndyMac-20
PHILADELPHIA PA 19101-7346 Austin, TX 78758-3658 Austin, TX 78758-3658


MAYORS JEWELERS Macy’s Mastercard
C/O BANKRUPTCY RESOURCE MANAGEMENT P.O. Box 183083 P.O. Box 31279
PO BOX 3788 Columbus, OH 43218-3083 Tampa, FL 33631-3279
TUSTIN CA 92781-3788


Mayor’s Jewelers of Florida, Inc. Mayor’s Jewelers, Inc. Michelle C. Fraga, Esq.
P.O. Box 406989 5870 North Hiatus Road 17415 South Dixie Highway
Atlanta, GA 30384-6989 Fort Lauderdale, FL 33321-6424 Miami, FL 33157-5491



Nordstrom Bank Nordstrom fsb Office of the US Trustee
P.O. Box 79134 P.O. Box 6566 51 S.W. 1st Ave.
Phoenix, AZ 85062-9134 Englewood, CO 80155-6566 Suite 1204
Miami, FL 33130-1614


Santander Bank Santander Bank University Credit Union
Prolongacion Paseo de la Reforma 500 Prolongacion Paseo de la Reforma 500 c/o Bruce M. Boiko, Esq.
Modulo Piso 2 Modulo Piso 2 1500 Miami Center
CANCUN, MEXICO Cancun, 77500 MEXICO 201 South Biscayne Boulevard
MEXICO Miami, Florida 33131-4332

Vincent McManus, Esq WELLS FARGO BANK, N.A. Barry E Mukamal
Albertelli Law ACS P.O. Box 371821 www.marcumllp.com
PO BOX 23028 Pittsburgh, PA 15250-7821 1 SE 3 Ave Box 158 10th Floor
Tampa, FL 33623-2028 Miami, FL 33131-1714


Erik X Alonso Peter Wizenberg
22056 SW 131st Place 1580 Sawgrass Corp Pkwy # 130
Miami, FL 33170-2659 Sunrise, FL 33323-2860




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The preferred mailing address (p) above has been substituted for the following entity/entities as so specified
by said entity/entities in a Notice of Address filed pursuant to 11 U.S.C. 342(f) and Fed.R.Bank.P. 2002 (g)(4).


IRS
P.O. Box 69
Memphis, TN 38101-0069






The following recipients may be/have been bypassed for notice due to an undeliverable (u) or duplicate (d) address.


(u)Miami (u)Martin Claire End of Label Matrix
Stampler Auctions Mailable recipients 28
Bypassed recipients 2
Total 30

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Exhibit “A”



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Exhibit “B”












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UNITED STATES BANKRUPTCY COURT

SOUTHERN DISTRICT OF FLORIDA

MIAMI DIVISION
www.flsb.uscourts.gov







CASE NO.: 12-27568-AJC

Chapter 7

IN RE:

ERIK X. ALONSO





















Debtor./

[PROPOSED]

ORDER GRANTING TRUSTEE’S MOTION TO APPROVE
STIPULATION FOR COMPROMISE AND SETTLEMENT




THIS CAUSE came before the Court upon Barry E. Mukamal, Trustee’s Motion to

Approve Stipulation for Compromise and Settlement Regarding Valuation and Repurchase of

Debtor’s Non-Exempt Assets (the “Motion”) (ECF ____). The Court having reviewed the

Motion and the Certificate of No Response, having noted that no objections were filed, finding

that the settlement subject of the Motion meets the criteria set forth in In re Justice Oaks II, Ltd.,

898 F.2d 1544 (11th Cir. 1990) and thus, is in the best interest of the Estate, and finding that the



Case 12-27568-AJC Doc 88 Filed 05/17/13 Page 19 of 19


notice of the proposed compromise and settlement is sufficient to comply with Bankruptcy Rule



9019 and 2002(a)(3), Local Rule 9013-1(D), and any other applicable notice requirement, it is







ORDERED AS FOLLOWS:

1.

2.

The Motion is GRANTED.

The compromise and settlement is approved on the terms and conditions set forth

in the Motion and Settlement Agreement attached to the Motion.



3.

The Court incorporates the terms of the Stipulation into this Order and retains

jurisdiction to enforce the terms thereof.

# # #

Submitted by:
Ross R. Hartog, Esq.
Markowitz, Ringel, Trusty & Hartog, P.A.
Counsel to Chapter 7 Trustee
9130 South Dadeland Boulevard, Suite 1800
Miami, FL 33156
Tel: (305) 670-5000

Copies to:
Ross R. Hartog, Esq.
(Attorney Hartog is directed to mail a copy of this Order to all interested parties and to file a
certificate of service).