In re Dorsey

MEMORANDUM DECISION RE MOTION FOR RELIEF FROM THE AUTOMATIC STAY UNDER 11 U.S.C. § 362 (d)(4)

This case presents a question of whether relief from the automatic stay may be granted under 11 U.S.C. § 362 (d)(4) without any showing that the debtor actually participated in a “scheme to delay, hinder, or defraud creditors.” For the reasons stated below, the court answers this question in the affirmative.

This matter initially came on for hearing before the undersigned United States Bankruptcy Judge on May 8, 2012 on a Motion for Relief from the Automatic Stay (the “Motion”) filed by Springleaf Financial Services, Inc., fka American General Financial Services, Inc. (“Movant”). Cassandra J. Richey and Melissa A. Vermillion, of Prober & Raphael, A Law Corporation, appeared on Movant’s behalf. No appearance was made on behalf of the Debtor, Dana Dorsey.

In the Motion, Movant requested relief under 11 U.S.C. § 362 (d)(1), (2) and (4). On April 11, 2012, the Debtor filed a written response to the Motion, stating: “Debtor has no knowledge of this property, the alleged transferor, or that the fractional interest was transferred to her. She does not oppose relief from stay, but because of…