relief from stay -- filed 8 days past redempt. period

[Tom_Mi]

All,
We filed on friday, and today one of our banks filed a relief from stay. At first I didn't care because I'm surrendering it.

BUT they said their grounds was because the redemption period ended on 12/4 and I essentially don't own it to bankrupt it.

Here's my fear....
Bankupting that property and 2 others are what keep me in a non-consumer filing. If I can't include it (because of 8 PIDDLY DAYS) I may need to reaffirm my house to stay in CH7!

Do I need to worry about this? Can it still remain included in the bankruptcy for the purposes of calculating business debt vs personal debt????

Many Thanks!
-t

[JRScott]

The debt would remain. Even if they repossessed the vehicle they'd sell it at auction most likely for less than you owe and you'd owe the deficiency balance so I'd still include it as far as debt.

Now if you need the payment for your expense sheet I'm not sure what to tell you. Depending on district if you were surrendering it wouldn't have been allowed anyway. Have you asked your lawyer about the matter?

[Tom_Mi]

Thanks JRScott, I'm waiting for the atty to call me back.

The payment isn't necessary, I just remember him saying that to be considered non-consumer I need:

APT1 debt + APT2 debt + APT3 debt > home debt + cc debt.

Well, if the redemption expired on APT1 8 days before filing, can it still be used in this equation?

[justbroke]

Oh... I see the issue now. APT1 was foreclosed on. You're saying that the redemption period from the foreclosure sale expired. The key is... had the new deed been recorded prior to filing? That is a technicality that may save your case.

I would check with the county recorder and see when the deed was actually recorded. If it was recorded on Day 9... then APT1 is property of YOUR BK Estate.

[Tom_Mi]

Oh... I see the issue now. APT1 was foreclosed on. You're saying that the redemption period from the foreclosure sale expired. The key is... had the new deed been recorded prior to filing? That is a technicality that may save your case.

I would check with the county recorder and see when the deed was actually recorded. If it was recorded on Day 9... then APT1 is property of YOUR BK Estate.

The sherriff's sale was back in October. The Bank's motion is simply stating that the redemption period is over effective 12/8. Is there any new recording of the deed required beyond the sherriff's sale back in october?

[justbroke]

The sherriff's sale was back in October. The Bank's motion is simply stating that the redemption period is over effective 12/8. Is there any new recording of the deed required beyond the sherriff's sale back in october?

Depends if they recorded a new deed. Generally, they can file a new deed before the Exemption and the Exemption only voids the new deed.

However, the recordation of the Deed is what's necessary to change the ownership. If the deed isn't recorded, regardless of foreclosure, redemption, or anything else... it's still property of your Estate.

Not that I expect that they didn't record the deed... you never know.

[Tom_Mi]

Ok, just talked to the attorney.

He says that although there's technically a point to be made here, it's unlikely that anyone will make us argue it.

The bank's motion was probably to permit repossession (fine by me) and not to argue my non-consumer status.

so now...I wait.. fingers crossed!

[justbroke]

Very nice to hear!