In Re Dorwin B. Cook, Debtor. Dorwin B. Cook and Sylvia G. Cook, His Wife v. T.F. Fletcher, Jr., and Rebecca Fletcher, His Wife

Appellants seek reversal of three bankruptcy court orders affirmed by the district court. Specifically, this appeal centers on the bankruptcy court’s decree of forfeiture pursuant to a state court order. Also appealed are the granting of relief from the automatic stay provision of the bankruptcy code and the denial of appellants’ motion to assume the contract under the code.

FACTS:

Appellants purchased property from the appellees with payments due on the contract of sale of approximately $5,000 per month. After the appellants fell behind in payments, appellees brought a forfeiture action in state court. The state court found a sufficient basis for forfeiture but reinstated the contract subject to further conditions to establish “substantial default.” After appellants filed a voluntary petition in bankruptcy under Chapter 11, appellees removed the forfeiture action to the bankruptcy court. Appellants again fell behind, this time of the state court’s payment schedule, and appellees, after obtaining relief from the automatic stay provision of 11 U.S.C. § 362 , sought and obtained a decree of forfeiture in the bankruptcy court. The bankruptcy court at the same time denied…