In re: Rafael Delbrey Rivera

CourtUnited States Bankruptcy Court, D. Puerto Rico
DecidedOctober 10, 2012
Docket10-00293
StatusUnknown

This text of In re: Rafael Delbrey Rivera (In re: Rafael Delbrey Rivera) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re: Rafael Delbrey Rivera, (prb 2012).

Opinion

1 IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF PUERTO RICO

° IN RE: : CASE NO. 10-00293 ‘ RAFAEL DELBREY RIVERA : CHAPTER 7 ° Debtor : 6 7 8 OPINION AND ORDER This case is before the court upon the Chapter 7 Trustee’s (hereinafter referred to as the 10 “Trustee”) Motion for Sale of Property Free and Clear of Liens filed on March 22, 2012 (Docket No. 47). On April 13, 2012 Eliseo Reyes Coreano and Blanca I. Torres Martinez’s (hereinafter referred 12 to as the “Objectors”) filed their Opposition to Motion for Sale by Trustee alleging that; (i) the Debtor 15 wrongly established title to a real estate property and the Trustee erroneously transferred the same M4 to Debtor’s estate; and (11) the Trustee “...embargoed and sold a piece of real estate property belonging 15 to the herein appearing parties without recurring to the act of filing an action for collection of money 16 against the principal debtors and the guarantors” (Docket No. 53). For the reasons set forth below the Trustee’s Motion for Sale of Property is granted and the Objectors’ Opposition to Motion for Sale by 18 Trustee is denied. 19 Facts and Procedural Background 20 Rafael Delbrey Rivera (the “Debtor’”) filed a bankruptcy petition under Chapter 13 of the 71 Bankruptcy Code on January 20, 2010. On February 3, 2010, the Debtor filed a Motion to Convert 22 Case under Chapter 13 to Case Under Chapter 7 pursuant to 11 U.S.C. §1307(a) (Docket No. 11). On 23 February 3, 2010, the Debtor filed his Chapter 7 Statement of Current Monthly Income and Means 24 Test Calculation, Statement of Financial Affairs, Chapter 7 Individual Debtor’s Statement of 25 Intention, Statistical Summary of Certain Liabilities and Related Data and the Summary of Schedules 26 and the Schedules (Docket No. 12). The Debtor listed on Schedule B- Personal Property, that he was 27 entitled to damages and property interests in the state court case, Delbrey Rivera v. Reyes Torres, et 28 als., case number D AC-2006-1958 which was on appeal and the current value of Debtor’s interest

1 listed as unknown. On February 8, 2010, the court granted Debtor’s motion requesting the 2 |lconversion to Chapter 7 (Docket No. 14). The 341 meeting of creditors was scheduled for March 9, 3 2010 and continued and held on April 13, 2010 (Docket Nos. 16 & 23). At the meeting of creditors, 4 ||the Trustee requested that the case be held open for potential asset recovery since he had to investigate 5 jjand prosecute the pending cause of action in state court (Docket No 24). Subsequently, on June 7, 6 2010, the Trustee filed an Application for Appointment of Attorney for the estate to assist the Trustee 7 the collection of monies from a state court judgment stemming from a division of community 8 |property between the Debtor and his ex-wife, Elaine Marie Reyes Torres (Docket No. 28). On June 9 2010, the court granted the Trustee’s application to employ special counsel (Docket No. 29). 10 On March 22, 2012, the Trustee filed a motion for sale of property free and clear of liens 11 pursuant to 11 U.S.C. §363(b) and (f) and included the terms and conditions of the sale in detail in 12 |jsaid motion. The property is a residence located at Urb. Alturas de Sans Souci, No. B-1-, Street #3, 13 |Bayamon, Puerto Rico (Docket No. 47). The Trustee stated in this motion that he identified as 14 |property of the bankruptcy estate a civil action to collect a state court judgment related to a divorce 15 |iproceeding settlement between the Debtor and his ex-wife, Elaine Marie Reyes Torres. The Debtor 16 |listed this particular lawsuit on Schedule B (Personal Property). The Trustee further stated that after 17 |Inumerous procedural incidents in state court, the $80,000 Judgment was collected through a state 18 |jcourt public sale of the real property, in which Eliseo Reyes Coreano and Blanca I. Torres Martinez 19 |lwere the registered owners of the real estate property per the Property Registrar. The Trustee also 20 |jinformed the court that an eviction proceeding was completed to oust (dislodge) the residents of the 21 property. Moreover, the transfer of the property to the estate of Rafael Delbrey Rivera was 22 |jcompleted and is evidenced by the Judicial Sale Deed #8 executed on November 15, 2011 before 23 Notary Public Jennifer Odell Gonzalez (Docket No. 47, Exhibit 8-Judical Sale Deed). The Trustee 24 |jinformed the court that the presentation and recording of the Judicial Sales Deed will be done jointly 25 ||with the deed to be prepared in conjunction with the sale of the property. The Trustee has obtained 26 |la private offer from Mr. Carlos A. Chard6n Rivera for the property in the amount of $160,000.00. 27 On April 13, 2012, the Objectors filed their Opposition to Motion for Sale by Trustee alleging 28 (i) the Debtor wrongly established title to a real estate property and the Trustee erroneously

1 |Itransferred the same to Debtor’s estate; and (ii) the Trustee “...embargoed and sold a piece of real 2 ||estate property belonging to the herein appearing parties without recurring to the act of filing an action 3 collection of money against the principal debtors and the guarantors” (Docket No. 53). On April 4 2012, the Trustee filed an Urgent Motion Requesting Hearing and Reply to Opposition to Motion 5 |for Sale in which he summarizes the numerous state court proceedings regarding the collection of a 6 |divorce proceeding settlement which consist of the following: (i) the state court Judgment in case No. 7 |D AC2006-1958, consists of a settlement agreement executed amongst the parties in open court; 8 |namely the Debtor, his ex-wife (Elaine Marie Reyes Torres), the Objectors (the ex-wife’s parents) and 9 Debtor’s parents. The agreement consists in that the Debtor’s ex-wife (Elaine Marie Torres Reyes) 10 |has agreed to satisfy the $80,000.00 debt in 180 days through the liquidation of the above mentioned 11 estate property. Moreover, Blanca I. Torres Martinez and Eliseo Reyes Coreano, as titleholders 12 |jof said property, agreed to execute in five (5) days a promissory note issued to holder in the amount 13 $80,000.00 with a term of 180 days. Mr. Rafael Delbrey Rivera after receiving the promissory note 14 would then issue the same to his parents (Rafael Delbrey Pérez and Emma Rivera Cintrén) to offset 15 jjacollection of monies claim. The state court Judgment which details the settlement agreement dated 16 ||October 23, 2009 states that all the parties were represented by counsel and provides the names of the 17 |lsame; (Docket No. 56, Exhibit 1); (ii) the state court Judgment after the same was notified to all 18 ||parties on November 6, 2009 became final, firm and unappealable on December 7, 2009 as 19 |recognized by a Resolution rendered on March 9, 2010, by the State Appellate Court for the Judicial 20 ||Regions of Bayamon and San Juan, which discloses that the appellants Eliseo Reyes Coreano and 21 |/Blanca I. Torres Martinez appealed the state court judgment after the jurisdictional term had lapsed, 22 leaving the Appellate Court without jurisdiction to entertain this matter (issue) (Docket No. 56, 23 |/Exhibit 2); Gii) pursuant to 11 U.S.C. §541

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In re: Rafael Delbrey Rivera, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-rafael-delbrey-rivera-prb-2012.