Bankruptcy – Automatic Stay

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7^th Circuit Court of Appeals

Case Name: Marzie Bastani v. Wells Fargo Bank, N.A.,

Case No.: 20-1373

Officials: Easterbrook, Sykes, and St. Eve, Circuit Judges.

Focus: Bankruptcy – Automatic Stay

After filing a petition under Chapter 13 of the Bankruptcy Code, Marzie Bastani asked the judge to stay a foreclosure proceeding pending in state court. The judge’s aid was essential, because Bastani’s previous bankruptcy had been dismissed less than a year earlier, and 11 U.S.C. §362(c)(3)(C)(i)(II) treats this timing as creating a presumption that the new filing is not in good faith. This means that the automatic stay ends 30 days after the new proceedings begins.  11 U.S.C. §362(c)(3)(B).

An antecedent issue requires attention, however. Bastani did not pay the filing fee for an appeal but sought leave to proceed in forma pauperis under 28 U.S.C. §1915. Wells Fargo Bank, her mortgage lender, opposes that motion, contending that 28 U.S.C. §1930 forbids IFP status in Chapter 13 appeals. By trying to achieve a principal benefit of Chapter 13 (keeping her home) without the detriment (paying her debts), Bastani has demonstrated that she is not entitled to the relief she seeks.

The motion for leave to proceed on appeal in forma pauperis is denied, and the decision of the district court is summarily affirmed.

Affirmed

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Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.