I filed a Chapter 11 case mainly to reorganize the loan against a $7
Million+ house. The new Chapter 11 filing is a first-ever filing by a lady
who lives in the house and is the daughter of a person who previously filed
two bankruptcy cases, the last one of which was a 13 and she had a 180 day
bar imposed on her. Neither of the previous 13s should have been filed as
a 13 because the debt secured by the property of less than $4 Million
exceeds the debt limits under Section 109 but the Mom and her family
weren't informed. The first was dismissed when the Mom didn't appear at
the 341(a) meeting because she was thousands of miles away for treatment
and had not even been informed by counsel that it was happening. The Mom
executed and recorded on 6/26/15 a Grant Deed transferring the property to
her daughter as a joint tenant. The petition by her daughter was filed on
7/1/15. The main reason the Mom didn't file, laid her hands down in the 13
or didn't seek relief from the bar is because she suffers from an ailment
that has her going overseas for treatment constantly and wouldn't be able
to be as proactive as is needed in an 11.
I notified Trustee Corps in writing of the filing one day before the day of
the sale (7/2 at 9 a.m.) and after saying they never got a copy of the
grant deed they finally rescheduled it for 5 days later, July 7, 2015 at 9
a.m., but only after we faxed them a copy of the recorded grant deed, As
late as the morning of 7/7 before 9 a.m. (they open for business at 8am),
they still had the sale scheduled to happen and acknowledged they knew
about the bankruptcy and told us to call back to get more information after
9am. At 9am, the website started reflecting that the property was sold to
a third party for $4.2 Million. The third party purchaser called me
saying that the Trustee told him they hadn't been able to verify the
validity of the Grant Deed and that this was a third filing. He told me he
figures the Trustee wants him to spend his money to test the effectiveness
of the stay, but now that he knows the foregoing, he does not think he has
a chance to win. If he thought he had a chance, he said, he would take a
shot since the reward is the over $3 Million in equity. However, he wants
me to file the motion for sanctions against Trustee Corps and Pennymac so
that Trustee Corps will return his cashier's check for $4.2 Million.
Otherwise, his money will be tied up for a month or longer fighting over
this. He said he is not a party in interest because he has not received
delivery of a Trustee's Deed Upon Sale. Upon learning of this, I gave a
deadline to Trustee Corps to rescind the sale, but it didn't. I then
started preparing the motion under LBR 9020-1 for contempt and automatic
stay violation, but I am still getting written evidence of some aspects and
haven't filed it. Technically, there is no hurry since a sale in violation
of the stay is void ab initio, but non-bankruptcy attorneys do not
understand that and are anxious. Yesterday, Trustee Corps delivered the
TDUS to the purchaser, informing a real estate agent for a purchaser to
whom the Debtor negotiated the sale of the property, that it delivered it
because we hadn't filed the motion to prevent them from doing it yet. A
few hours later, the purchaser filed a motion for relief from stay on the
basis of bad faith seeking annulment retroactively to validate the sale and
claims that it did not know that the bankruptcy stay was in effect when it
purchased the house.
I share the foregoing to find out if any of you is aware of similarly
aggressive tactics by Trustee Corps or Pennymac, ideally memorialized in
Court opinions. This seems to be a transparent end-run-around the
automatic stay by proceeding with a foreclosure sale despite knowledge of a
bankruptcy case without telling potential purchasers. The purchaser then
has the choice of taking a stab at getting retroactive relief from stay or
otherwise suing the trustee to get its cashiers' check back.
All input asap is welcome.
Giovanni Orantes, Esq.*
Orantes Law Firm, P.C.
3435 Wilshire Blvd. Suite 2920
Los Angeles, CA 90010
Tel: (213) 389-4362
Fax: (877) 789-5776
e-mail:
go@gobklaw.com
website:
www.gobklaw.com
**Certified Bankruptcy Specialist, State Bar of California, Board of Legal
Specialization*
*Board Certified - Business Bankruptcy Law - American Board of Certification
*Board Certified - Consumer Bankruptcy Law - American Board of Certification
Commercial Litigation
Estate Planning
Outside General Counsel
WE ARE A "DEBT RELIEF AGENCY" AS DEFINED BY FEDERAL LAW.
SERVING BAKERSFIELD, LOS ANGELES, ORANGE COUNTY, RIVERSIDE, SAN BERNARDINO
AND SANTA BARBARA AND THE WORLD FOR CHAPTER 11 AND 15 CASES.
Note: The information in this e-mail message is not intended to be legal
advice and should not be relied upon as legal advice unless counsel
expressly contracted in writing to provide such advice. Furthermore, the
information contained in this e-mail message is confidential information
intended only for the use of the individual or entity named. If the reader
of this message is not the intended recipient or an agent responsible for
delivering it to the intended recipient, you are hereby notified that any
dissemination, distribution or copy of this communication is strictly
prohibited. If you have received this communication in error, please
immediately notify us by telephone or e-mail and delete the original e-mail
I filed a Chapter 11 case mainly to reorganize the loan against a $7 Million+ house. the house and is the daughter of a person who previously filed two bankruptcy cases, the last one of which was a 13 and she had a 180 day bar imposed on her. Neither of the previous 13s should have been filed as a 13 because the debt secured by the property of less than $4 Million exceeds the debt limits under Section 109 but the Mom and her family weren't informed. The first was dismissed when the Mom didn't appear at the 341(a) meeting because she was thousands of miles away for treatment and had not even been informed by counsel that it was happening. The Mom executed and recorded on 6/26/15 a Grant Deed transferring the property to her daughter as a joint tenant. The petition by her daughter was filed on 7/1/15. The main reason the Mom didn't file, laid her hands down in the 13 or didn't seek relief from the bar is because she suffers from an ailment that has her going overseas for treatment constantly and wouldn't be able to be as proactive as is needed in an 11.I notified Trustee Corps in writing of the filing one day before the day of the sale (7/2 at 9 a.m.) and after saying they never got a copy of the grant deed they finally rescheduled it for 5 days later,July 7, 2015 at 9 a.m., but only after we faxed them a copy of the recorded grant deed, As late as the morning of 7/7 before 9 a.m. (they open for business at 8am), they still had the sale scheduled to happen and acknowledged they knew about the bankruptcy and told us to call back to get more information after 9am. At 9am, the website started reflecting that the property was sold to a third party for $4.2 Million. y hadn't been able to verify the validity of the Grant Deed and that this was a third filing. He told me he figures the Trustee wants him to spend his money to test the effectiveness of the stay, but now that he knows the foregoing, he does not think he has a chance to win. If he thought he had a chance, he said, he would take a shot since the reward is the over $3 Million in equity. However, he wants me to file the motion for sanctions against Trustee Corps and Pennymac so thatTrustee Corpswill return his cashier's check for $4.2 Million. Otherwise,his money will be tied up for a month or longer fighting over this. He said he is not a party in interest because he has not received delivery of a Trustee's Deed Upon Sale. Upon learning of this, I gave a deadline to Trustee Corps to rescind the sale, but it didn't. I then started preparing the motion under LBR 9020-1 for contempt and automatic stay violation, but I am still getting written evidence of some aspects and haven't filed it. Technically, there is no hurry since a sale in violation of the stay is void ab initio, but non-bankruptcy attorneys do not understand that and are anxious. Yesterday, Trustee Corps delivered the TDUS to the purchaser, informing a real estate agent for a purchaser to whom the Debtor negotiated the sale of the property, that it delivered it because we hadn't filed the motion to prevent them from doing it yet. A few hours later, the purchaser filed a motion for relief from stay on the basis of bad faith seeking annulment retroactively to validate the sale and claims that it did not know that the bankruptcy stay was in effect when it purchased the house.I share the foregoing to find out if any of you is aware of similarly aggressive tactics by Trustee Corps or Pennymac, ideally memorialized in Court opinions. This seems to be a transparent end-run-around the automatic stay by proceeding with a foreclosure sale despite knowledge of a bankruptcy case without telling potential purchasers. The purchaser then has the choice of taking a stab at getting retroactive relief from stay or otherwise suing the trustee to get its cashiers' check back.All input asap is welcome.-- Giovanni Orantes, Esq.*Orantes Law Firm, P.C.3435 Wilshire Blvd. Suite 2920Los Angeles, CA 90010Tel: (213) 389-4362Fax: (877) 789-5776e-mail:
The post was migrated from Yahoo.