The issue in this case is whether the bankruptcy court abused its discretion when it denied the Creditor’s motion for relief from the stay.
On May 6, 2009, the Debtors filed a petition for relief under Chapter 13 of Title 11 of the United States Code (the “Bankruptcy Code”). A few months later, the Debtors filed their modified Chapter 13 plan, which was confirmed in September, 2009. The Debtors are the owners of real property that is their homestead. It is undisputed that the Debtors executed a promissory note and a mortgage on the property that is held by the Creditor. With respect to the Creditor, the confirmed plan states:
5. CLAIMS NOT IN DEFAULT
Payment on the following claims are current and the debtor will pay the payments that come due after the date of the petition was filed directly to the creditors. The creditors will retain liens, if any.
Creditor Description of Claim
CitiMortgage First mortgage on Homestead
In 2013, the Creditor filed a motion for relief from the automatic stay, together with supporting documents, seeking relief pursuant to 11 U.S.C. § 362(d)(1). The Debtors did not file a written response to the motion for relief from the stay.
Judge(s): Barry S. Schermer
Jurisdiction: U.S. Court of Appeals, Eighth Circuit
Related Categories: Finance / Banking
|Circuit Court Judge(s)|
|Charles Nail, Jr.|