In re Scott-Hood
473 B.R. 133
Bankr. W.D. Tex.2012Background
- Debtor filed a voluntary Chapter 13 petition on Oct 11, 2011, after a prior case (No. 09-55022) was dismissed on Aug 19, 2011.
- Section 362(c)(3) creates an automatic stay that expires 30 days after filing unless a motion to extend is timely filed and a hearing is held within that window.
- Debtor did not file a motion to extend the stay within 30 days, so the stay terminated as to creditors under § 362(c)(3)(A).
- Chase filed a motion on Mar 1, 2012 for orders confirming termination of the stay as to its lien and related actions on the property.
- The court on Mar 6, 2012 entered an order terminating the stay with respect to Chase for the described real property, allowing Chase to pursue nonbankruptcy remedies.
- Debtor then moved on Mar 16, 2012 to reconsider and/or vacate the order, arguing the stay remains in effect as to property of the estate under § 362(c)(3)(A).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 362(c)(3)(A) terminates the stay as to property of the estate. | Debtor argues stay remains for estate property under § 362(c)(3)(A). | Chase argues stay terminates for the debtor and property securing debts, including estate property. | Stay terminates only as to debtor and certain collateral, not property of the estate. |
| Whether the stay should remain in effect for property of the estate under Chapter 13. | Debtor asserts property of the estate remains protected depending on § 362(c)(3)(A) interpretation. | Creditor contends broad termination applies to all property securing debts and leases. | Property of the estate is not subject to termination under § 362(c)(3)(A). |
| What the plain meaning of § 362(c)(3)(A) supports in this district. | Text supports broader protection for estate property. | Text supports termination with respect to debtor and some collateral. | Statute bears a plain meaning: termination to debtor and certain categories; not to estate property. |
Key Cases Cited
- In re Holcomb, 380 B.R. 813 (10th Cir. BAP 2008) (terminates stay as to debtor and debtor's property)
- In re Jumpp, 356 B.R. 789 (1st Cir. BAP 2006) (stay remains for property of estate if not debtor-owned)
- Rinard v. Positive Invs., Inc. (In re Rinard), 451 B.R. 12 (Bankr. C.D. Cal. 2011) (majority view; plain text limits stay termination to debtor)
- In re Alvarez, 432 B.R. 839 (Bankr.S.D. Cal. 2010) (debtor-only termination; estate property protected)
- In re Johnson, 335 B.R. 805 (Bankr. W.D. Tenn. 2006) (textual interpretation of 362(c)(3)(A) favors debtor-focused termination)
- In re McFeeley, 362 B.R. 121 (Bankr. D. Vt. 2007) (interpretation of 362(c)(3)(A) in context of Chapter 7)