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In re Robinson (Case No. 15-71689) 2/4/2016

At the time the Chapter 13 petition was filed in the instant case, the debtor had another Chapter 13 case pending in this same court.  In that case, a secured creditor was granted relief from stay.  The creditor began the foreclosure process, but the debtor filed this second case to stop the foreclosure.  However, in the first case, the debtor had not received his discharge because of procedural matters that were out of his control, namely, an employer continued to send payment to the Chapter 13 Trustee per a wage deduction order, even though an order was sent to the employer notifying it that the Trustee had sufficient funds on hand to pay the case in full.  Pursuant to Local Rule 1017-2, an order dismissing the second case was entered.

The Debtor then filed a motion to vacate dismissal and reinstate case.  The court granted the motion after determining that, even though in general a debtor should not have multiple bankruptcy cases, the present circumstances constitute exceptional circumstances where the only reason the first case remained open was due to procedural issues out of the debtor's control.  The pending foreclosure sale was deemed to be void and of no effect.

Date: 
Thursday, February 4, 2016
Category: 
Automatic Stay
Dismissal
Eligibility
Foreclosure
Relief from Stay
Reopening/Reinstatement
Chapter: 
13