In Re Barakat

Life Insurance Co. of Virginia v. Barakat (In Re Barakat)

Good Law

1994 WL 575458·173 B.R. 672·1994 Bankr. LEXIS 1645·26 Bankr. Ct. Dec. (CRR) 161

United States Bankruptcy Court, Central District of CaliforniaSeptember 26, 1994Bankruptcy No. LA 93-47514-GM. Ref. No. LA 93-02964-GMCalifornia5,793 words

Opinion

Mund, J.

MEMORANDUM OF OPINION ON MOTIONS FOR CONDITIONAL APPROVAL OF DISCLOSURE STATEMENT AND FOR RELIEF FROM THE AUTOMATIC STAY

Mohammed S. Barakat filed bankruptcy on October 22, 1993, principally to protect his apartment building from foreclosure by Life Insurance of Virginia (“LIV”), which is an undersecured creditor. The LIV note, made by the debtor and four relatives, was all due on September 1, 1989; however, it appears that it was extended from year to year. In June 1993, the remaining relatives conveyed title to this property to the debtor and his wife, and the debtor immediately defaulted on his payments to LIV. Settlement discussions took place between Barakat and LIV, but when no agreement was reached, LIV filed a complaint for judicial foreclosure and sought the appointment of a receiver. On the eve of the receivership hearing, the debt- or filed this chapter 11 proceeding.

On November 17, 1993, LIV filed its motion for relief from the automatic stay. At the hearing, the Court granted adequate protection, allowing LIV to proceed with the non-judicial foreclosure action, but not to appoint a receiver. The motion for relief from stay was then continued to February 22, 1994,…

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