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In re Foster (Case No. 12-60619) 5/22/2012

The Court granted a creditor's Motion for Relief, determining that interests in property are determined under state law unless some federal law requires a different result.  Here, property that the debtor occupied had been determined to be the property of another.  Because the real property is not property of the debtor, it is not property of the estate, so the automatic stay does not apply with respect to that property.  However, litigation against the debtor regarding the property is subject to the automatic stay, and the Court found sufficient cause to grant relief from stay because the state court litigation is on the verge of conclusion, predominantly involves state law issues, and would promote judicial economy.  Accordingly, the Court granted relief from the automatic stay.

Date: 
Tuesday, May 22, 2012
Category: 
Automatic Stay
Property of the Estate
Chapter: 
11