Neal v. Behind the Gates, LLC, et al.

Summarized by:

  • Court: Oregon Court of Appeals
  • Area(s) of Law: Bankruptcy Law
  • Date Filed: 12-02-2020
  • Case #: A169747
  • Judge(s)/Court Below: Armstrong, P.J., and Tookey, J., and Aoyagi, J.
  • Full Text Opinion

A bankruptcy petition operates as a stay of “the commencement [...] of a judicial [...] proceeding against the debtor[.]” 11 USC §362(a)(1), without exception.

Petitioner appealed an order of eviction and an award of restitution. On appeal, Petitioner argued that the trial court erred in holding the hearing because she was the named debtor in an involuntary bankruptcy proceeding. Petitioner asserted that under 11 USC § 362(a)(1), the forcible entry and detainer (FED) proceeding required a stay. A bankruptcy petition operates as a stay of “the commencement [...] of a judicial [...] proceeding against the debtor[.]” 11 USC §362(a)(1). The Court found that the trial court erred when it concluded there was an exception to the bankruptcy stay. Thus, the Court held that the trial court erred by holding the hearing and entering an order for eviction. Reversed.

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