Thursday, April 21, 2011


In re: Niedzeilski, ___ BR ___ (Bkrpcy WD Mich 2010)

Husband filed a Chapter 13 bankruptcy after entry of a divorce judgment which included award of a horse farm and homestead to wife. He signed a quit claim deed transferring all interest to her as agreed and ordered. Relying on the quit claim deed, the credit union holding a mortgage on the property asserted the property was not part of husband’s bankruptcy estate and sought relief from the automatic stay. Husband pointed to another part of the judgment, which awarded him a share of the money from the sale of the farm, if there were net proceeds after payment of debt, claiming an interest that his bankruptcy estate could protect. The bankruptcy court disagreed with husband, holding he had no in rem interest in the farm after the divorce and quit claim deed. Thus, husband’s bankruptcy did not prevent the credit union from taking steps to collect its debt secured by the mortgage on the farm, as against wife or the property.

Dailey intrenet new from Flint MI USA

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