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In re Wilson (Case No. 05-71657) 6/29/2005

A foreclosure sale took place the day after the Debtor filed for bankruptcy.  The Debtor asserts that the foreclosure sale was an act in violation of the automatic stay of 11 U.S.C. § 362.  The creditor asserts that (1) the automatic stay did not arise in the first place as the property was owned as tenants by the entireties with rights of survivorship; (2) if the automatic stay did arise, it should nevertheless be "annulled" pursuant to 11 U.S.C. § 362(d); and (3) if the stay should not be "annulled," relief from the stay should be granted for cause.  The Court concluded that the circumstances of this case do not establish grounds for annulling the automatic stay and validating the foreclosure sale.  Nevertheless, the Court concluded that there is undisputed evidence that the creditor will not have adequate protection if the automatic stay is continued; accordingly, the Court granted the Motion for Relief for cause, permitting the creditor to conduct a new foreclosure sale.

Date: 
Wednesday, June 29, 2005
Category: 
Automatic Stay
Foreclosure
Relief from Stay
Chapter: 
13