Opinion
Case No. 07-22358-C-7, MC No. APN-1.
August 2, 2007
FINDINGS OF FACT AND CONCLUSIONS OF LAW ON MOTION FOR RELIEF FROM AUTOMATIC STAY NOT INTENDED FOR PUBLICATION
These findings of fact and conclusions of law, which are not intended for publication, are rendered in this contested matter pursuant to Federal Rule of Civil Procedure 52 as incorporated by Federal Rules of Bankruptcy Procedure 7052 and 9014.
Jurisdiction
Jurisdiction is founded upon 28 U.S.C. § 1334. This is a core proceeding. 28 U.S.C. § 157(b)(2)(G).
Findings of Fact
Debtors filed their voluntary chapter 7 petition on April 4, 2007. They scheduled a 2006 Chrysler 300C ("vehicle") as property of the estate. The first meeting of creditors was held on May 11, 2007. The chapter 7 trustee filed a report finding that there is property available for distribution from the estate over and above that exempted by the debtors. Debtors were discharged from all dischargeable debts on July 17, 2007.
On June 28, 2007, Wells Fargo Financial ("movant") filed a motion, notice, and declaration requesting that this court vacate the automatic stay to permit movant to repossess the vehicle. The Kelley Blue Book value of the vehicle is approximately $30,600. Movant holds a lien on the vehicle in the approximate amount of $38,453.90. There is no evidence of any other liens against the vehicle.
No opposition to the motion was filed within the time prescribed by Local Bankruptcy Rule 9014-1(f)(1). The parties have consented to taking evidence by affidavit and have not demonstrated that there is any disputed material factual issue that would warrant an evidentiary hearing. See L. Bankr. R. 9014-1(f)(1). The evidentiary record is closed. Id.
Upon review of the record, the court determined that the written record was adequate and that no oral argument is necessary.
Conclusions of Law
The automatic stay of acts against debtor in personam expires when the debtor is granted a discharge. 11 U.S.C. § 362(c)(2)(C). Acts against property of the estate remain stayed until the earliest of the time when the bankruptcy case is closed, dismissed, or the property ceases to be property of the estate. 11 U.S.C. § 362(c). The automatic stay may be terminated earlier if debtor fails to protect the secured party's interest adequately, § 362(d)(1), and, with respect to a stay of an act against property, debtor does not have equity in the property, § 362(d)(2)(A), and the property is not necessary to an effective reorganization. 11 U.S.C. § 362(d)(2)(B). The issue of whether the property is necessary to an effective reorganization is not considered in a chapter 7 case because no reorganization is contemplated in a chapter 7 case.
Although the debtors do not appear to have any equity in the vehicle, since the debtors were granted a discharge, the automatic stay has expired as to the debtors. Thus, the motion insofar as it is directed at the interest of the debtors is moot and will be denied.
However, the motion will be granted as to the interest of the trustee.
An appropriate order will issue.