In re Womack

Apr 05, 2006

OUTCOME: Court ruled that provision for automatic termination of stay did NOT apply to stay protecting property of estate. As such, Debtor's plan was confirmed, allowing her the opportunity to save her home by paying her mortgage current over 5 years.

Chapter 13 Case where Debtor sought to save her home from foreclosure by paying the arrearage on her mortgage over the life of the chapter 13 plan, thus reinstating the mortgage. The filing was her se ... cond within a year, thus new bankruptcy statute provided that the automatic stay would terminate automatically in 30 days. Needed to keep stay in place to prevent foreclosure and foiling of plan. Argued that the provision providing for automatic termination of the stay did not apply to stay protecting the bankruptcy estate and its property. Case of first impression for court.