()

District Judge Kenneth M. Karas

 

Read Full- Text Decision

Nath defaulted on a promissory note and mortgage as to certain property (Subject Property). On Dec. 12, 2014 he filed for Chapter 7 bankruptcy relief. On Oct. 21, 2015 he sought relief under Chapter 13. On Oct. 26 bankruptcy court lifted the automatic stay, and appointed a referee to sell the Subject Property at foreclosure. Nath appealed bankruptcy court’s April 13, 2015 order denying him extension of the automatic stay and sanctions in his Chapter 7 case, and its Feb. 10, 2016, order denying his motion to vacate the Subject Property’s foreclosure sale in his Chapter 13 case. Denying both appeals, district court affirmed the bankruptcy court’s orders. Nath was not acting in good faith in filing his Chapter 7 petition. His focus in not having the mortgage and foreclosure judgment enforced is the proper purpose of a Chapter 7 filing. His instant court filings reinforce the conclusion he is using his Chapter 7 filing to attack the foreclosure judgment. Also, various courts previously rejected all of Nath’s arguments in connection with his appeal of the bankruptcy court’s decision denying vacatur of the foreclosure sale. The state court decided the issue of Chase bank’s standing to foreclose on the loan when it issued its foreclosure judgment.

District Judge Kenneth M. Karas

 

Read Full- Text Decision

Nath defaulted on a promissory note and mortgage as to certain property (Subject Property). On Dec. 12, 2014 he filed for Chapter 7 bankruptcy relief. On Oct. 21, 2015 he sought relief under Chapter 13. On Oct. 26 bankruptcy court lifted the automatic stay, and appointed a referee to sell the Subject Property at foreclosure. Nath appealed bankruptcy court’s April 13, 2015 order denying him extension of the automatic stay and sanctions in his Chapter 7 case, and its Feb. 10, 2016, order denying his motion to vacate the Subject Property’s foreclosure sale in his Chapter 13 case. Denying both appeals, district court affirmed the bankruptcy court’s orders. Nath was not acting in good faith in filing his Chapter 7 petition. His focus in not having the mortgage and foreclosure judgment enforced is the proper purpose of a Chapter 7 filing. His instant court filings reinforce the conclusion he is using his Chapter 7 filing to attack the foreclosure judgment. Also, various courts previously rejected all of Nath’s arguments in connection with his appeal of the bankruptcy court’s decision denying vacatur of the foreclosure sale. The state court decided the issue of Chase bank’s standing to foreclose on the loan when it issued its foreclosure judgment.