In re Crockett
In re Crockett
Opinion of the Court
ORDER GRANTING RELIEF FROM STAY
THIS CAUSE is before the Court upon the Motion for Relief from Stay filed by Mary Marguerite Lineberger on October 16, 1996, by which this creditor seeks relief from the automatic stay in order to pursue her state court remedies. The debtor responded by her attorney on October 24,1996, and also responded by filing, pro se,
Hearing on this matter was held
When a debtor files a Chapter 7 bankruptcy case, all property and interest in property of the debtor becomes property of the estate, 11 U.S.C. § 541, subject to administration by the trustee. When a debtor exempts property pursuant to section 522, however, that property is removed from the estate and vests in the debtor. 11 U.S.C. § 522(b); In re Hoffmeister, 191 B.R. 875 (D.Kan. 1996). Of course, this does not mean that the property is relieved from pre-bank-ruptcy liens or pre-bankruptcy orders issued by other courts. See In re Lillard, 38 B.R. 433, 438 (Bankr.W.D.Ark. 1984). It has long been held that once the property is removed from the estate, and the trustee has declared that the estate has no interest in that property, there is no cause for the Court to exercise jurisdiction over that property or resolve disputes regarding that property. See Zapalac v. White, 9 F.Supp. 419 (S.D.Tex. 1934). Since the trustee has no interest in the prop
In so ruling, there is no deprivation, as asserted by the debtor, of any right to due process. There is no specific right to litigate state court matters before the Bankruptcy Court. Rather, the debtor is afforded all of her rights to due process in state court. She may assert defenses, introduce evidence in support of her ease, or, if the matter has proceeded to judgment, appeal the ruling of the state trial court. This Court will not determine issues already decided by another Court or make determinations over issues and property over which it has no jurisdiction.
ORDERED: Motion for Relief from Stay filed by Mary Marguerite Lineberger on October 16,1996, is GRANTED.
IT IS SO ORDERED.
. The debtor’s attorney was subsequently permitted to withdraw.
. The Court granted relief from stay in open court at the conclusion of the hearing, and, as customary, directed the creditor's counsel to prepare the Order. Although the Order in fact precisely and properly reiterates the Court's oral ruling, the Court prepares this Order.
Reference
- Full Case Name
- In re Carol CROCKETT
- Cited By
- 1 case
- Status
- Published