In re Sheu

In In re Sheu, [EDNY June 16, 2009], a Judgment of Foreclosure and Sale had been issued by the New York State Supreme Court and sale of the property was to be conducted on the day after Sun-Ming Sheu, the bankruptcy debtor, filed for bankruptcy. Upon the debtor's application by Order to Show Cause, the Bankruptcy Court issued a temporary injunction staying the sale while it considered debtor's application to extend the bankruptcy stay to his wholly owned corporation which held title to the real property. In ultimately declining to extend the stay, the Court held that even were this Court to find that the debtor is the sole shareholder of QQ Network, that finding alone would not result in a ruling in the debtor's favor. In forming a separate entity, the debtor revealed his intent to treat the QQ Network entity as distinguishable from himself so he could protect his personal assets from QQ Network's creditors and QQ Network's assets from his personal creditors.