Cole v. Household Financial (In Re Cole)

382 B.R. 20, 2008 Bankr. LEXIS 297, 2008 WL 361045
CourtUnited States Bankruptcy Court, E.D. New York
DecidedFebruary 7, 2008
Docket1-19-40639
StatusPublished
Cited by5 cases

This text of 382 B.R. 20 (Cole v. Household Financial (In Re Cole)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cole v. Household Financial (In Re Cole), 382 B.R. 20, 2008 Bankr. LEXIS 297, 2008 WL 361045 (N.Y. 2008).

Opinion

DECISION

CARLA E. CRAIG, Chief Judge.

This matter comes before the Court on the motion of Sonia Maria Cole (the “debt- or”) to reopen this Chapter 13 bankruptcy Case pursuant to 11 U.S.C. § 350. For the foregoing reasons, the motion is denied.

Jurisdiction

This court has jurisdiction over this core proceeding pursuant to 28 U.S.C. §§ 157 and 1334, and the Eastern District of New *23 York standing order of reference dated August 28, 1986. This decision constitutes the Court’s findings of fact and conclusion of law to the extent required by Federal Rule of Bankruptcy Procedure 7052.

Facts

The following facts are undisputed.

On September 22, 2000, the debtor filed a voluntary petition under Chapter 13 of the Bankruptcy Code (the “2000 Case”). The debtor never filed any schedules, statement of financial affairs, or Chapter 13 plan. The debtor never attended a Section 341 meeting of creditors and never filed mandatory Chapter 13 disclosure documents.

On November 27, 2000, the Michael J. Maceo (the “trustee”) filed a motion to dismiss the case. Thereafter, on December 15, 2000, an order was entered dismissing the case.

On January 10, 2001, the debtor filed a second voluntary petition under Chapter 13 of the Bankruptcy Code (the “2001 Case”). On January 19, 2001, Stuart Gel-berg, the chapter 13 trustee assigned to that case, filed a motion to dismiss. On April 10, 2001, the debtor’s 2001 case was dismissed.

On December 16, 2002, the debtor filed a voluntary petition under Chapter 7 of the Bankruptcy Code (the “2002 Case”). On December 24, 2002, the debtor filed a motion seeking to convert the case to one under Chapter 13. Thereafter, on February 6, 2003, the Court denied the debtor’s motion to convert. The Court found that the debtor filed the case in bad faith to obtain the benefit of the automatic stay during the pendency of litigation before other tribunals. The Court also found that the debtor made no showing of eligibility for Chapter 13 relief, which was particularly important in light of the two previous Chapter 13 dismissals.

On February 12, 2003, the debtor filed an appeal of the Court’s order denying her motion to convert the 2002 case. On December 5, 2003, the appeal was denied.

On July 8, 2004, the debtor’s 2002 case was dismissed for failure to pay the balance of the bankruptcy court filing fees.

On August 23, 2007, the debtor filed the instant motion to reopen the 2000 case, which was dismissed more than six years before. She explains that her reason for seeking to reopen this case “is to correct Article 78 Violation, an administrative error, or § 362, § 1301, was void/eviction ... willful violation for stay under local or state [law with] harassment.” Notice of Motion, Docket # 18. On November 1, 2007, the trustee filed opposition to the debtor’s motion.

Although her motion to reopen the 2000 Case has not been granted, Ms. Cole filed an adversary proceeding in that case (Adversary Proceeding No. 07-1619-CEC) on December 21, 2007, against approximately 50 defendants, including Plaza Homes LLC, Merrick Realty LLC, Judge Anne Katz, Judge Leverett, Judge Simeon Go-lar, Referee Leon Schneider, “other et al/ John Doe/Jane Doe,” Housing Court, “Bankruptcy/Couri/Trustee/Administration,” Supreme Court, Civil Housing Court, Family Court, “Appellants Term/Admin/NYS,” U.S. District Court, Criminal Court, “Fair Hearing State Court,” U.S. Department of Justice Immigration and Naturalization Service, and “Board of Education/Brown vs Board of Education.” Amended Complaint, Adv. Pro. 07-1619. The debtor seeks damages of $40 million for the allegedly wrongful foreclosure sale, harassment, and subsequent eviction. She also asserts the following claims: housing discrimination, warranty of habitability, violation of automatic stay by utility companies, violation of civil rights, other discrimination, malicious *24 prosecution, segregation, exploitation, lead paint damages, and breach of contract. Amended Complaint, Adv. Pro. 07-1619.

It appears that Ms. Cole’s principal reason for seeking to reopen the 2000 Case is to seek redress against the former holder of the mortgage on the house that she or her husband owned at the time that case was commenced for allegedly violating the automatic stay by proceeding with a foreclosure sale one hour after the 2000 Case was commenced. See Tr. 1 9/25/07 at 2, 5. At the first hearing held on this motion, Ms. Cole stated that the house in question was owned by her husband, who was not a debtor in the 2000 Case, but that she believes that she had an interest in the house that was protected by the automatic stay because she had contributed to paying the mortgage. Tr. 9/25/07 at 5. The property in question was sold in 2000 and Ms. Cole was evicted from it in 2001. Tr. 9/25/07 at 5. Ms. Cole also seeks to assert claims against numerous other parties, many of which are not fully identified, for other wrongs she claims to have suffered.

Discussion

Section 350 of the Bankruptcy Code provides:

(a) After an estate is fully administered and the court has discharged the trustee, the court shall close the case.
(b) A case may be reopened in the court in which such case was closed to administer assets, to accord relief to the debt- or, or for other cause.

11 U.S.C. § 350.

A bankruptcy case may only be reopened pursuant to § 350(b) if it is closed pursuant to § 350(a), after it is fully administered and the trustee is discharged. Critical Care Support Servs. v. United States (In re Critical Care Support Servs.), 236 B.R. 137, 140 (E.D.N.Y.1999). As stated in Critical Care:

[a] bankruptcy [case] is reopened under 11 U.S.C. § 305(b), not to restore the prebankruptcy status ... but to continue the bankruptcy proceeding. The word “reopened” used in Section 350(b) obviously relates to the word “closed” used in the same section. In our opinion a case cannot be reopened unless it has been closed. An order dismissing a bankruptcy case accomplishes a completely different result than an order closing it would and is not an order closing.

Id. at 141 (quoting Armel Laminates, Inc. v. Lomas & Nettleton Co. (In re Income Prop. Builders, Inc.), 699 F.2d 963, 965 (9th Cir.1982)).

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Cite This Page — Counsel Stack

Bluebook (online)
382 B.R. 20, 2008 Bankr. LEXIS 297, 2008 WL 361045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cole-v-household-financial-in-re-cole-nyeb-2008.