IN THE UNITED STATES BANKRUPTCY COURT
FOR THE NORTHERN DISTRICT OF CALIFORNIA
In re
RICHARD TAYLOR, No. 94-10896
Debtor.
___________________________/
Memorandum of Decision
The debtor filed his Chapter 13 petition just after his house was sold at nonjudicial
foreclosure sale but just before the trustee's deed was recorded. The issue is whether it is too
late for the debtor to cure the default and save his home pursuant to section 1322(b)(3) of the
Bankruptcy Code.
If the court were writing on a blank slate, it would be inclined to agree with the court in
In
re Young, 156 B.R. 282 (Bkrtcy.D.Idaho 1993)(construing Idaho law), that the debtor's rights
are cut off by the sale. However, the court of appeals has held that the sale itself does not
terminate all of the debtor's rights.
In re Walker, 861 F.2d 597 (9th Cir.1988).
Walker has
been held to permit the debtor to save his home in cases such as this.
In re Duncombe, 143
B.R. 243 (Bkrtcy.C.D.Cal.1992);
In re Williams, 124 B.R. 311 (Bkrtcy.C.D.Cal.1991).
The objecting creditor in this case has filed no formal brief. Its entire argument was to hand
the court a copy of the 1993 amendment to California Civil Code section 2924h. No reasons
were given as to why the creditor thinks the amendment overruled
Walker, nor is such an interpretation evident.
Accordingly, the court finds that it is not too late for the debtor to save his home.
Counsel for the debtor shall submit an appropriate form of order forthwith.
Dated: May 31, 1994 _______________________
Alan Jaroslovsky
U.S. Bankruptcy
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