Radhika Nataraj

IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
In re: 	Case No. 08-11724PM
Chapter 7
Radhika Nataraj,
Debtor.
MEMORANDUM OF DECISION
This case is before the court on the Motion for Relief from Stay filed by United
Rental Properties ("United"). Specifically, United seeks relief from the automatic stay
to allow it to seek judgment against the Debtor and her spouse, Prasad M. Nataraj, in
state court so as to enable United to levy on property owned by them as entireties
property that could not be reached in this bankruptcy proceeding. This effort has long
been sanctioned by the Fourth Circuit (
Phillips v. Krakower, 46 F.2d 764, 765-766
(CA4 1931);
Chippenham Hosp. v. Bondurant, 716 F.2d 1057, 1059 (CA4 1983)) so as
to avoid what the court has viewed tantamount to legal fraud as to a creditor holding a
claim against both partners.
Sumy v. Schlossherg, 777 F.2d 921, 931 n.24 (CA4 1985).
The Debtor opposes the Motion for various reasons including the fact that the
Internal Revenue Service has a priority claim that would be ahead of the Movant's
claim. In any event, should another creditor be successful in its adversary proceeding
seeking denial of Debtor’s discharge,
Gonchigar v. Nataraj, Adv. Proc. No. 08-0430,
this dispute would he moot.
Date signed November 04, 2008
Entered: November 05, 2008 Case 08-11724 Doc 64 Filed 11/05/08 Page 1 of 2

The court will grant the Motion insofar as it will allow United to proceed with
the civil action filed in the Circuit Court for Montgomery County, Maryland, against
the Natarajs to judgment, as well as to any appeals therefrom, but without the right to
pursue collection of any such judgment. This is because United should not be allowed
to be placed in a position superior to creditors holding allowed claims as to the Debtor
and her spouse.
An appropriate order will be entered.
cc: 	Radhika and Prasad Nataraj
10000 Ormond Road
Potomac, MD 20854
Merrill Cohen
Cohen, Baldinger & Greenfeld, LLC
7910 Woodmont Avenue
Suite 1103
Bethesda, MD 20814
Cheryl E. Rose
12154 Darnestown Road
Box 623
Gaithersburg, MD 20878
William D. Day
98 Church Street
Rockville, MD 20850
End of Memorandum
Case 08-11724 Doc 64 Filed 11/05/08 Page 2 of 2