Sunday, January 26, 2014

The Scope of the Expiration of the Automatic Stay in a Subsequently Filed Chapter 13 Case

The court in In re Holcomb, 2008 WL 62623 (10th Cir.BAP (Okla.) addressed the filing of a chapter 13 case where the debtor had a case pending within a year prior to the petition date. The court noted that section 362(c)(3)(B) applies if the debtor has had a case pending within the year prior to the petition date. The court further noted that pursuant to this section, a motion to extend the automatic stay must be filed and heard before the expiration of the thirty day period after which the automatic stay expired.

The debtor argued that the stay only terminates with respect to the debtor and his property and not with respect to property of the estate. The court reviewed that only a minority of court have concluded that the stay terminates in its entirety and that the majority of courts conclude that the stay continues with respect to property of the estate. See, e.g. In re Jumpp, 356 B.R. 789 (1st Cir. BAP 2006). The Court adopted the majority approach and concluded that the automatic stay terminates only with respect to the debtor and property of the debtor.