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6500 Cherrywood Ln - Greenbelt, MD 20770 - Main Tel: 301-344-8018 map
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Chapter 7 trustee filed opposition to secured creditor’s motion for relief from the automatic stay as to the debtor’s residence, but the trustee did not attend the hearing on motion, which was granted after the secured creditor’s presentation of evidence. The trustee filed motion to vacate the lift stay order on grounds that secured creditor had received a preference as a result of its late recordation of an indemnity deed of trust. Trustee then withdrew the motion to vacate in order to pursue an adversary proceeding to avoid the preference. On secured creditor’s motion to dismiss the adversary as barred by collateral estoppel, Held, collateral estoppel did not apply because the issue of the preferential transfer was not “actually litigated” at the hearing on the motion for relief from stay.

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James F. Schneider