In re Carona
United States Bankruptcy Court for the Southern District of Texas
254 B.R. 364 (2000)
- Written by Abby Roughton, JD
Facts
In August 1999, Richard Carona (debtor) filed for Chapter 13 bankruptcy. Carona’s Chapter 13 plan was confirmed in March 2000. Sterling Bank (Sterling) (creditor) subsequently sought relief from the Bankruptcy Code’s automatic stay, alleging that Carona had failed to make payments to the Chapter 13 trustee as required by the Chapter 13 plan. Sterling sought to execute on security interests it held in trucks and trailers and then sell the trucks and trailers. Sterling presented evidence that Carona was $8,700 delinquent in payments to the trustee, and Carona’s attorney presented no evidence to the contrary. Carona also never took any steps to cure the deficiency in payments or modify the Chapter 13 plan to cure the default. However, Carona argued that the confirmation of the Chapter 13 plan revested the trucks and trailers in Carona, which meant they were no longer the bankruptcy estate’s property. Carona claimed that because the trucks and trailers were not part of the estate, the automatic stay was inapplicable, and Sterling’s motion was moot. The bankruptcy court considered these arguments in ruling on Sterling’s motion.
Rule of Law
Issue
Holding and Reasoning (Steen, J.)
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