ee4c3a84_United_States_Bankruptcy_Court__Summary
[Date Filed] 07/02/2015 [Case Number] 15-30700 [PDF] View [Summary] 
In re: Lockett Summary: This matter was before the Court on the debtor's motion to extend the automatic stay and objections thereto by two of the debtor's creditors. The debtor had initially filed for Chapter 13 bankruptcy on December 31, 2012. The debtor and his home mortgage lender preliminarily agreed to a loan modification. During the agreement’s trial period, the debtor fell behind on his payments and, because of this fact, the lender did not approve the modification. The lender filed a motion for relief from the automatic stay on May 14, 2013, after which time the debtor filed an amended Chapter 13 plan that provided for the surrender of his home to the lender. The Court granted the lender's motion on May 29, 2013. Less than five months after receiving relief from the stay, the lender and the debtor entered into a second loan modification agreement. The debtor remained current with his mortgage payments for roughly eight months. However, he fell behind when his spouse became unemployed. The lender filed a foreclosure action on February 27, 2015. On March 18, 2015, the debtor filed a voluntary motion to dismiss his case. The Court granted the debtor’s motion on April 3, 2015—674 days after the Court granted the lender's motion for relief from the stay. On April 30, 2015—27 days after obtaining the voluntary dismissal of his prior case—the debtor filed the instant case. The debtor is current on his plan payments and neither creditor presented any evidence of bad faith. Both creditors argue that the debtor was ineligible from becoming a debtor in the instant case pursuant to the plain meaning of 11 U.S.C. § 109(g)(2) and that, therefore, there is no stay in place to extend. The debtor contends that § 109(g)(2) does not preclude him from being a debtor in this case. Further, he argues that he filed the instant case in good faith and, therefore, that the stay should be extended pursuant to 11 U.S.C. § 362(c)(3)(B). The Court granted the debtor's motion, holding that the debtor was eligible to be a debtor in the current case because he as of the prior case as a result of the filing of the motion for relief from stay and that the stay shall be extended because he filed the instant case in good faith and neither creditor provided evidence indicating bad faith or that in any way challenged the debtor's argument that the stay shall be extended.
Opinions | Southern District of Illinois | United States Bankruptcy Court
Summary