In re Barnett (18-30832)

A creditor filed a motion for relief from stay to foreclose on the Chapter 13 Debtor’s residence.  At the hearing on the motion, the creditor asked for a continuance.  Debtor’s counsel argued that the motion was frivolous and asked the court to hold a hearing to consider sanctions under Bankruptcy Rule 9011.  Counsel, however, had not complied with the 21 day notice requirements of Rule 9011(c)(1)(A).  Counsel then argued the 21 day rule did not apply if the court held a hearing on its own motion pursuant to Rule 9011(c)(1)(B).  After Debtor’s counsel briefed the issue, the court held that it would be improper to allow Debtor’s counsel to avoid the requirement of Rule 9011(c)(1)(A) by seeking relief under Rule 9011(c)(1)(B).

Wednesday, January 23, 2019