Booker Theodore Wade, Jr. v. Forest Villa Homeowners' Association

Ninth Circuit BAP No. NC-14-1562-DJuTa (Nov. 17, 2015)
Bankruptcy court properly found that Debtor had no standing to contest lien claim of homeowners association in a no-asset chapter 7 case where debtor's discharge had been entered and relief from stay had been granted to the association. Because this was a no-asset case, the allowance of disallowance of the claim would have no impact on the estate and Debtor had no pecuniary interest in the issue as it related to the no-asset bankruptcy case. Whatever bankruptcy jurisdiction existed, evaporated when the court ordered relief from stay allowing the association to pursue its' in rem state law rights, if any, against certain homesteaded real property.
Procedural context:
Debtor objects to association claim in chapter 11 bankruptcy case. Before the claims objection is heard, the case is converted to chapter 7. Discharge is entered. Relief from stay is granted to the association regarding the liened real property state court in rem rights it had, if any. One day later, the bankruptcy court found that debtor had no standing to purse the claim objection since his discharge had been entered and relief from stay had been granted to the association. Debtor appeals.
Debtor owns real property in Palo Alto, California with a scheduled value of $710,693. A consensual lien exists in the amount of $674,945. And debtor claims a statutory homestead exemption amount of $175,000. A homeowners association filed its (apparently secured lien) claim in the amount of $60,929.82.
DUNN, JURY, and TAYLOR, Bankruptcy Judges

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