Charles M. Baul

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF MARYLAND
at Greenbelt
IN RE: :
:
CHARLES M. BAUL : Case No. 04-37538PM
: Chapter 13
Debtor :
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SECRETARY OF VETERANS AFFAIRS :
Movant :
vs. :
:
CHARLES M. BAUL :
SUSAN R. BAUL, Co-Debtor :
NANCY L. SPENCER GRIGSBY, Trustee :
Respondents :
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - :
MEMORANDUM OF DECISION
This case is before the court on the motion of the Secretary of Veterans Affairs for relief
from the stay of 11 U.S.C. § 362(a) so as to allow completion of foreclosure proceedings pending
in the Circuit Court for Montgomery County, Case No. V240879. The precise issue before the
court is whether a Consent Order and Stipulation Modifying Automatic Stay entered in the case
of Susan R. Baul, Case No. 03-30116DK, entered January 15, 2004, operated to terminate the co-
debtor stay of § 1301(a) as to the co-debtor in that case, the Debtor in this case, so that the
Affidavit of Default filed May 4, 2004, operated to terminate the stay. If that were the case, the
foreclosure sale held June 17, 2004, divested both Bauls of the equity of redemption and
equitable ownership in the property.
The co-debtor stay of § 1301(d) provides:
Date signed February 02, 2005
Entered: February 03, 2005 Case 04-37538 Doc 29 Filed 02/03/05 Page 1 of 2

11 U.S.C. § 1301. Stay of action against codebtor
(d) Twenty days after the filing of a request under subsection (c)(2) of this
section for relief from the stay provided by subsection (a) of this section, such stay
is terminated with respect to the party in interest making such request, unless the
debtor or any individual that is liable on such debt with the debtor files and serves
upon such party in interest a written objection to the taking of the proposed action.
Here, the motion for relief from stay was filed on November 14, 2003. The twentith day after the
filing of the motion for relief from the stay, by the terms of the statute itself, the co-debtor stay
was ended. It is true that a response to the automatic stay was filed by Susan R. Baul in the
earlier case on December 9, 2003, and that response operated to put in issue the matters dealt
with by the motion for relief state as to the debtor and thereupon led to the Consent Order entered
January 15, 2004. By operation of law, the co-debtor stay terminated, there being no objection
filed within 20 days after the filing of the request.
A Collier explains in § 1301.3[1][b], the addition of § 1301(d) to the Bankruptcy Code in
1984 “afforded a streamlined procedure for obtaining relief from the codebtor stay when a
motion is filed pursuant to Rule 4001(a). The procedure set forth in subsection (d) dispenses
with the necessity of obtaining a court order if neither debtor nor codebtor, within 20 days, files
and serves upon the parties seeking relief a written objection to the requested relief. Unless such
an objection is served and filed, the codebtor stay with respect to the party requesting relief
automatically terminates.” Thus, the codebtor stay was terminated by operation of law. No
further provision was required in the Consent Order modifying the automatic stay that was
ultimately issued. However, the court believes that the better practice is to provide for that as
well.
An appropriate order will be entered.
cc:
Deborah K. Curran, Esq., 8101 Sandy Spring Road, Suite 302, Laurel, MD 20707
Robert Haeger, Esq., 9535 Fern Hollow Way, Gaithersburg, MD 20886
Charles M. Baul, 13 Jeremy Court, Derwood, MD 20855
Susan B. Baul, 13 Jeremy Court, Derwood, MD 20855
End of Memorandum
Case 04-37538 Doc 29 Filed 02/03/05 Page 2 of 2