Title Memorandum Opinion in re Evans
Michelle M. Harner
Case Number

The creditor sought relief from the automatic stay to exercise its rights and remedies against two properties listed in the debtor’s bankruptcy schedules. The parties resolved the pending stay motions by agreed orders, and the debtor subsequently defaulted on his obligations under those orders. At the hearing on the creditor’s related Affidavits of Default, the creditor argued that the subject properties were titled in the name of a nondebtor corporation and thus were not property of the debtor’s estate. After an opportunity for post-hearing briefing, the Court considered the creditor’s arguments. Because the automatic stay generally does not apply to the property of nondebtor parties, absent special circumstances (not present in this case) or a request for an injunction under section 105 of the Code, the Court found the creditor’s position valid and warranted under the circumstances of this particular case. Accordingly, the Court determined that the automatic stay did not extend to the subject properties.