In re Brown

2013 WL 2318414 (2013)

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In re Brown

United States Bankruptcy Court for the Eastern District of Virginia
2013 WL 2318414 (2013)

  • Written by Jody Stuart, JD

Facts

Donald and Rosa Brown (debtors) owned real property, and Aspen Shackleton III, LLC (Shackleton) (creditor) held a lien on the property. In 2011, the Browns filed for Chapter 13 bankruptcy (the prior case). In the prior case, Shackleton requested relief from the automatic stay, which was granted on July 12, 2012. The Browns then filed a motion to voluntarily dismiss, which was granted on August 15, and the prior case was dismissed. On August 16, the Browns filed the present Chapter 13 bankruptcy case. Because the Browns had been debtors in a bankruptcy case that was dismissed within one year of the present case, the present case’s automatic stay would expire in 30 days unless the Browns requested and were granted an extension of the stay. On August 23, the Browns filed a motion to extend the automatic stay. The bankruptcy court granted the motion for all creditors except Shackleton, and the order extending the stay was entered on October 5. Subsequently, Shackleton conducted a foreclosure sale of the real property. The Browns then filed a motion to set aside the foreclosure sale, alleging that Shackleton’s sale of the property was in violation of the stay.

Rule of Law

Issue

Holding and Reasoning (Huennekens, J.)

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