Lorenzo Lopez v. Lon Jenkins

CourtBankruptcy Appellate Panel of the Tenth Circuit
DecidedFebruary 3, 2026
Docket25-002
StatusPublished

This text of Lorenzo Lopez v. Lon Jenkins (Lorenzo Lopez v. Lon Jenkins) is published on Counsel Stack Legal Research, covering Bankruptcy Appellate Panel of the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lorenzo Lopez v. Lon Jenkins, (bap10 2026).

Opinion

BAP Appeal No. 25-2 Docket No. 52 Filed: 02/03/2026 Page: 1 of 13 FILED U.S. Bankruptcy Appellate Panel of the Tenth Circuit NOT FOR PUBLICATION 1 February 3, 2026 UNITED STATES BANKRUPTCY APPELLATE PANEL Anne Zoltani OF THE TENTH CIRCUIT Clerk _________________________________

IN RE LORENZO LUCIANO LOPEZ, BAP No. UT-25-2

Debtor. ______________________________

LORENZO LUCIANO LOPEZ, Bankr. No. 24-26705 Chapter 13 Appellant,

v.

LON A. JENKINS, Chapter 13 Trustee, OPINION and AUNTIE TUT TRUST,

Appellees. _________________________________

Appeal from the United States Bankruptcy Court for the District of Utah _________________________________

Submitted on the briefs. 2 _________________________________

Before ROMERO, Chief Judge, HALL, and LOYD, Bankruptcy Judges. _________________________________

1 This unpublished opinion may be cited for its persuasive value, but is not precedential, except under the doctrines of law of the case, claim preclusion, and issue preclusion. 10th Cir. BAP L.R. 8026-6. 2 After examining the briefs and appellate record, the Court has determined unanimously oral argument would not materially assist in the determination of this appeal. See Fed. R. Bankr. P. 8019(b)(3). The case is, therefore, ordered submitted without oral argument. BAP Appeal No. 25-2 Docket No. 52 Filed: 02/03/2026 Page: 2 of 13

HALL, Bankruptcy Judge.

This appeal presents the all-too frequently used, but rarely successful, scheme to

preserve property interests on the eve of judicial or extra-judicial sale of real property

following default using a repeated pattern of transfers and bankruptcy filings.

Specifically, this scheme involves a series of transfers of an interest in the subject real

property to “connected” persons and/or entities followed by subsequent, successive

bankruptcy filings in an effort to stop such sales by imposition of the automatic stay. The

courts recognize these schemes for what they are—an abuse of the bankruptcy process—

just as the Bankruptcy Court did below and this Court does herein albeit at a relatively

early stage.

I. Background and Procedural History

In July 2013, Mr. Johnathan Darger (“Darger”) executed a “Secured Promissory

Note” payable to Appellee Auntie Tut Trust (the “Trust”) secured by a “Trust Deed” on

property located at 13887 S. Lamont Lowell Circle, Herriman, Utah (the “Property”). 3

The next month, Darger transferred the Property via warranty deed to Ultimate Estates,

LLC. 4 Then, in 2018, Ultimate Estates, LLC transferred the Property to Ultimate

Enterprise, LLC. 5 On December 30, 2024, the Property was transferred by Ultimate

Enterprise, LLC to itself and Appellant Lorenzo Lopez (“Lopez”) via quitclaim deed. 6

3 Secured Promissory Note in Appellant’s App. at 51; Trust Deed in Appellant’s App. at 55. 4 Warranty Deed in Appellant’s App. at 65. 5 Warranty Deed in Appellant’s App. at 68. 6 Quit Claim Deed in Appellant’s App. at 71. 2 BAP Appeal No. 25-2 Docket No. 52 Filed: 02/03/2026 Page: 3 of 13

The succession of related bankruptcy cases began on January 29, 2024, when

Darger filed a chapter 13 case, specifically Case No. 24-20354 in the Bankruptcy Court,

only one day prior to a scheduled Trustee’s sale of the Property on January 30, 2024. 7

The First Case was subsequently dismissed on April 9, 2024, for Darger’s failure to file

required documentation. 8 A new Trustee’s sale of the Property was scheduled for June 5,

2024; 9 however, Darger filed the Second Case on June 4, 2024. 10 The Second Case was

dismissed on July 25, 2024, again for Darger’s failure to file required documentation.

Immediately prior to a third scheduled Trustee’s sale of the Property, and immediately

after the Property had been conveyed to him, Lopez filed a chapter 13 case on December

30, 2024, specifically Case No. 24-26705 (“Third Case”). 11

On December 31, 2024, the Trust filed a motion to dismiss the chapter 13 case, for

relief from the automatic stay pursuant to 11 U.S.C. § 362(d)(1), 12 and for in rem stay

relief pursuant to § 362(d)(4), arguing “the filing of the petition was part of a scheme to

7 The Bankruptcy Court took judicial notice of Darger’s prior chapter 13 bankruptcy cases, Case Nos. 24-20354 (“First Case”) and 24-22721 (“Second Case”). Transcript of January 14, 2025 Hearing at 7–8 in Appellant’s App. at 255–56. See also Proof of Publication [of Notice of Trustee’s Sale] in Appellant’s App. at 89–90. It is well established a court may take judicial notice of its own records as well as records of other courts, particularly in closely related cases. Hutchinson v. Hahn, 402 F. App’x 391, 394– 95 (10th Cir. 2010) (unpublished) (citing St. Louis Baptist Temple, Inc. v. Fed. Deposit Ins. Corp., 605 F.2d 1169, 1172 (10th Cir. 1979)). 8 Transcript of January 14, 2025 Hearing at 8 in Appellant’s App. at 256. 9 Notice of Trustee’s Sale in Appellant App. at 94–96. 10 Transcript of January 14, 2025 Hearing at 8 in Appellant’s App. at 256. 11 Quit Claim Deed in Appellant’s App. at 71; Voluntary Petition in Appellant’s App. at 24–32. 12 Unless otherwise noted, all references to “Section,” “§,” “Bankruptcy Code,” and “Code” refer to the U.S. Bankruptcy Code, 11 U.S.C. § 101, et seq., and all references to the “Rules” refer to the Federal Rules of Bankruptcy Procedure. 3 BAP Appeal No. 25-2 Docket No. 52 Filed: 02/03/2026 Page: 4 of 13

delay, hinder, or defraud creditors” (the “Stay Motion”). 13 The Bankruptcy Court

scheduled a hearing on the Stay Motion for January 14, 2025. 14 On January 13, 2025,

Lopez filed a motion to voluntarily dismiss his case pursuant to § 1307(b) (the

“Voluntary Dismissal Motion”). 15 Later the same day, Lopez filed an objection to the

Stay Motion arguing the Bankruptcy Court lacked jurisdiction over the Stay Motion once

the Voluntary Dismissal Motion had been filed. 16

On January 14, 2025, the Bankruptcy Court conducted the scheduled hearing, at

which Lopez did not appear, and subsequently entered a Minute Order, which provided:

“Stay relief under both § 362(d)(1) and § 362(d)(4)(B) is granted. The waiver of the 14-

day stay of FRBP 4001(a)(4) is granted. The case will be dismissed after entry of the stay

relief order.” 17 A few hours later, the Bankruptcy Court entered an order granting the

request for relief from the automatic stay (the “Stay Relief Order”). 18 Shortly thereafter,

the Bankruptcy Court entered an order granting the Voluntary Dismissal Motion and

dismissing Lopez’s case (the “Dismissal Order”). 19 The Dismissal Order also provided,

“since [Lopez] requested and obtained the voluntary dismissal of the case following the

filing of a request for relief from the automatic stay provided by section 362 of this title,

13 11 U.S.C. § 362(d)(4)(B). 14 Docket Sheet in Third Case in Appellant’s App. at 19, ECF No. 11.

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