Irigoyen vs. American Brokers Conduit, Inc., et al.

Filing 17

ORDER FOR ADDITIONAL BRIEFING signed by Chief Judge Anthony W. Ishii on 10/27/11. (Nazaroff, H)

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UNITED STATES DISTRICT COURT
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EASTERN DISTRICT OF CALIFORNIA
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BERNADETTE IRIGOYEN, personally
and on behalf of all similarly situated,

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Plaintiff,
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v.
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AMERICAN BROKERS CONDUIT, ELS )
INC., JPMORGAN CHASE BANK, N.A., )
CHASE HOME FINANCE, LLC, U.S.
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BANK NATIONAL ASSOCIATION, J.P. )
MORGAN ALTERNATIVE LOAN
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TRUST, 2007-A2, CALIFORNIA
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RECONVEYANCE COMPANY, AND
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NORTHWEST TRUSTEE SERVICES, )
INC.,
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Defendants.
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____________________________________ )

CASE NO. 1:11-CV-1228 AWI BAM
ACKNOWLEDGMENT OF NOTICE
OF BANKRUPTCY AND ORDER
FOR ADDITIONAL BRIEFING

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This case involves the Defendants’ foreclosure of real property owned by Plaintiff

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Bernadette Irigoyen. On October 11, 2011, Plaintiff filed a notice of Chapter 7 bankruptcy. Doc.

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15. The automatic bankruptcy stay applies to actions “brought against the debtor.” 11 U.S.C.

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§362(a). The automatic stay provisions do not apply to lawsuits brought by the debtor. See

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Snavely v. Miller, 397 F.3d 726, 729 (9th Cir. 2005). However, once a person files for

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bankruptcy, a bankruptcy estate is created and that estate includes causes of action that accrued

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prior to the filing of bankruptcy. See De Pomar v. Equifirst Corp., 2010 U.S. Dist. LEXIS

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143216 (C.D. Cal. Feb. 2, 2010); Basilio v. TDR Servicing, 2009 U.S. Dist. LEXIS 120583

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(E.D. Cal. Dec. 29, 2009). The bankruptcy trustee becomes the real party in interest with respect

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to the bankruptcy estate assets. In order to proceed, “plaintiff would have to show that (1) her

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claims fall under the bankruptcy exemption or (2) the bankruptcy trustee has abandoned those

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claims.” Basilio v. TDR Servicing, 2009 U.S. Dist. LEXIS 120583, *15-16 (E.D. Cal. Dec. 29,

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2009). In light of Plaintiff’s filing bankruptcy, the parties will be directed to file briefing

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regarding Plaintiff’s standing to pursue this lawsuit.

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Accordingly, IT IS HEREBY ORDERED that:
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On or by November 8, 2011, Plaintiff shall address her standing to pursue this lawsuit in
light of her filing of bankruptcy.

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On or by November 18, 2011, Defendants shall file a response.

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IT IS SO ORDERED.

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Dated:
0m8i78

October 27, 2011
CHIEF UNITED STATES DISTRICT JUDGE

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