In re Cortez

MEMORANDUM OF DECISION RE MOTION TO DISMISS CASE WITH PREJUDICE

On May 26, 2006, debtors Johnathan and Aurora Cortez (“Debtors”) moved to dismiss the above-captioned chapter 13 ease. 1 At that time, creditor Cedar Associates (“Cedar”) filed a response in which it urged the Court to dismiss the case with prejudice. In order to give the Debtors an adequate opportunity to respond to Cedar’s request, the Court granted the Debtors’ motion to dismiss on May 31, 2006, but retained jurisdiction to consider a motion filed by Cedar or the chapter 13 trustee (“Trustee”) within thirty days, requesting that the dismissal be made with prejudice.

The Trustee subsequently made a timely motion to dismiss the ease with prejudice, and Cedar joined in the motion. Having considered the papers and arguments submitted, the motion to dismiss the case with prejudice is granted.

BACKGROUND

Prior to October 15, 2004, Debtors owned their residence located at 3254 Ursa Way in Hayward, California (the “Residence”) as joint tenants. On October 15, 2004, Debtors executed a grant deed, which transferred a joint tenancy interest in the Residence to their son Eric Cortez (“Erie”), in order to qualify for…