In re: Philip James Metschan

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

IN RE PHILIP JAMES METSCHAN,

Debtor.

SHAY, Case No. 22-cv-05447-VC

Creditor-Appellant,

ORDER AFFIRMING THE

v. BANKRUPTCY COURT’S

ABSTENTION ORDER

HOFFMAN,

Trustee-Appellee.

Two years ago, Philip Metschan filed a petition for a voluntary Chapter 7 bankruptcy. Timothy Hoffman was appointed as the bankruptcy trustee and several creditors filed timely claims against the bankruptcy estate. Another creditor, Metschan’s ex-wife Christina Shay, filed an untimely and unsecured claim with six different parts. In general, a late claim is only paid if there are funds left after paying any timely claims in full. But Shay’s claim included a domestic support obligation, which is given priority even if filed late. After the trustee objected to Shay’s claim, the bankruptcy court allowed three of its six components, including the priority domestic support obligation (although in a lower amount than Shay had sought). The court then directed the parties to attempt to settle the dispute over the rest of Shay’s claim, including about $37,000 in long-term incentive payments and bonuses from…