Korchinsky v. Skyline Vista Equities, LLC (In re Manasaryan)

Summarized by David Hercher , U.S. Bankruptcy Court, District of Oregon
11 years 7 months ago

Citation:

Korchinsky v. Skyline Vista Equities, LLC (In re Manasaryan), No. CC-13-1303-DKiTa (July 23, 2014)

Tag(s):

Ruling:

The bankruptcy court properly granted in rem and retroactive stay relief in a chapter 13 case. (Not-for-publication memorandum.)

Procedural context:

The debtor filed a chapter 13 petition. Without knowledge of the bankruptcy, secured creditor (“bank”) completed a foreclosure on real property of the debtor. The bank moved for annulment of the stay based on bad faith, annulment of the stay under section 362(d)(4), and an order that, as a result of annulment of the stay, the foreclosure was not void. The bankruptcy court granted the bank’s motion, and the debtor appealed to the 9th Circuit BAP.

Facts:

The bankruptcy court found that, after the debtor filed his petition and without court approval, the debtor purported to convey interests in the real property to two chapter 7 bankruptcy debtors and that he engaged in a course of conduct designed solely to protect the property from foreclosure. The bankruptcy court found for the bank on each section 362(d)(4) element: the bankruptcy was part of a scheme; the purpose of the scheme was to delay, hinder, or defraud creditors; and the scheme involved either the transfer of some interest in the real property without the bank’s consent or court approval or multiple bankruptcy filings. Based on the same facts, the bankruptcy court also granted retroactive stay relief to validate the postpetition foreclosure done without knowledge of the debtor’s bankruptcy case.

Judge(s):

Randall L. Dunn, Ralph B. Kirscher, and Laura S. Taylor, Bankruptcy Judges

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