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In re Reynolds (Case No. 09-71964) 02/10/2011

            After the debtor had received a discharge, Wells Fargo filed a motion for relief from stay as to certain property of the estate, alleging $14,000 of default on the loan secured by the property.  At the time debtor filed his petition, the property was held by the debtor as the trustee of a trust established by his father.  The debtor’s father died and, pursuant to the trust instrument, a 50% share of the trust was distributed to the debtor.  The debtor opposed the motion for relief, but the trustee did not file a response.  The Court ruled that the debtor lacked standing since the property was property of the chapter 7 estate and the trustee had not yet abandoned the property.  The Court found cause to grant relief from stay.

Date: 
Thursday, February 10, 2011
Category: 
Automatic Stay
Chapter 7 Issues
Relief from Stay
Standing
Chapter: 
7