Gasprom, Inc v. Fateh, et al. (In re Gasprom, Inc)

Summarized by Clifford Stevens , Neumiller & Beardslee
12 years 4 months ago

Citation:

CC-12-1567-KuKiTa

Tag(s):

Ruling:

Foreclosure of real property was in violation of automatic stay where chapter 7 trustee abandoned real property but bankruptcy case was still open and creditor had not obtained relief from stay. The fact that Debtor in this case was a corporation and not an individual does not alter the analysis. Alternatively, the bankruptcy court order annulling the automatic stay was announced sua sponte and, on remand, the parties must have the opportunity to brief and present evidence on the equities of granting an annulment of the stay.

Procedural context:

Debtor moved to reopen the bankruptcy case so that motions could be heard to set aside the foreclosure and to consider an order to show cause why the creditor should not be held in contempt. At the hearing to reopen the case, the bankruptcy court determined that all issues had been briefed and determined that the case should be reopened, that the abandonment effectively lifted the automatic stay, and that annulment of the stay was proper to the extent abandonment did not completely lift the automatic stay.

Facts:

Chapter 7 trustee abandoned Debtor's real property. Debtor was a corporation. Immediately after the abandonment order was entered, secured creditor foreclosed on the real property.

Judge(s):

KURTZ, KIRSCHER and TAYLOR, Bankruptcy Judges.

ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!