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UNITED STATES BANKRUPTCY COURT
DISTRICT OF MASSACHUSETTS
(Eastern Division)
In re:
Chapter 7
STEPHEN J. SALVO, ; Case No. 04-10547 JNF
Debtor.
TRUSTEE'S NOTICE OF INTENT TO ABANDON INTEREST IN ESCROW FUNDS
TO UNITED STATES TRUSTEE AND ALL OTHER PARTIES IN INTEREST:
PLEASE TAKE NOTICE that, pursuant to section 554(a) of the United States
Bankruptcy Code (the "Bankruptcy Code"),Bankruptcy Rule 6007(a) and M.L.B.R. 6007-1, John
J. Aquino (the "Trustee"), the duly-appointed chapter 7 trustee of the estate of Stephen J. Salvo,
the debtor herein (the "Debtor"), intends to abandon certain funds in the amount of$194,106.68
held in escrow by counsel to Phoenix Financial Corp. (the "Escrow Funds") on the grounds that
the Escrow Funds are burdensome or of inconsequential benefit and value to the Debtor's estate.
The Trustee will abandon the Escrow Funds unless a creditor or other party in interest files a
written objection to the proposed abandonment with the Clerk's Office of the United States
Bankruptcy Court, 1101 ONeill Federal Office Building, 10 Causeway Street, Boston,
Massachusetts 02222, and serves a copy of such objection on the undersigned within fifteen days
of the mailing of this notice. Objections not timely filed and served may be deemed waived. In
further support of this Notice,the Trustee states the following:
1. The Debtor filed a voluntary petition under chapter 7 of the United States
Bankruptcy Code on January 23, 2004. Thereafter,the Trustee was appointed chapter 7 trustee
by the United States Trustee for the District of Massachusetts, and the Trustee continues to serve
as chapter 7 trustee.
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2. Prior to the Petition Date, the Debtor held an ownership interest in certain real
estate located at 147 North Street, Salem, Massachusetts (the "Property'), subject to a first
mortgage(the"First Mortgage") in favor of Phoenix Financial Corp. ("Phoenix") and a second
mortgage(the "Second Mortgage") in favor of Mario Casale, Trustee of One Forty Seven Realty
Trust("Casale").
3. In or about February, 2004,Phoenix conducted a foreclosure sale of the Property.
Upon information and belief, the Property was sold at the foreclosure sale for $384,925.00.
Phoenix asserts that as of the date of the foreclosure sale, the Debtor owed Phoenix a balance of
$189,818.32 on the loan secured by the First Mortgage, which balance included principal,
interest, costs, fees and attorneys' fees. Accordingly, Phoenix asserts that the sale generated
$194,106.68 in funds in excess of the amounts due pursuant to the loan secured by the First
Mortgage. These funds constitute the Escrow Funds which are presently held by counsel to
Phoenix.
4. The Trustee has reviewed the loan documents executed by the Debtor and Casale
and is satisfied that the Second Mortgage is a valid mortgage which is duly recorded at the Essex
Registry of Deeds. The Trustee is further satisfied that the Second Mortgage secures obligations
of the Debtor to Casale with a balance due in excess of the amount of the Escrow Funds.
5. Based upon the foregoing review, the Trustee is satisfied that there is no equity in
the Escrow Funds for the benefit of the estate. Any further assertion of an interest in the Escrow
Funds by the estate would only serve to harm Casale in its efforts to obtain the Escrow Funds,
such that the Escrow Funds are not only of no value to the estate,but are potentially burdensome
to the estate.
6. Notwithstanding the foregoing, the Trustee affirmatively states that the
abandonment described herein is an abandonment of only the specific funds at issue. The
abandonment does not constitute an abandonment of the estate's interest in the Property,
proceeds of the Property other than the Escrow Funds, or any claims of the estate which are
related to the Property, including, but not limited to, claims against Phoenix with respect to the
foreclosure sale of the Property and/or the amounts allegedly due pursuant to the loan secured by
the First Mortgage.
7. If no objection to this fVotice is timely filed,the Escrow Funds will be deemed
abandoned. If an objection to this Notice is timely filed by a creditor or other party in interest,
the Bankruptcy Court will schedule a hearing in connection therewith. In the event a hearing is
scheduled in connection with the proposed abandonment of the Escrow Funds, creditors and
other parties in interest will receive notice of such hearing from the undersigned.
JOHN J. AQUINO, Chapter 7 trustee
By his attorneys,
/s/Philip C. Silverman
Philip C. Silverman (BBO#555492)
Anderson Aquino LLP
260 Franklin Street
Boston, MA 02110
Dated: June 4, 2004 (617) 439-3500