The Bankruptcy Code requires an individual debtor in a chapter 7 case to undertake certain obligations with respect to personal property that secures a debt. A debtor must file a statement of intention indicating whether she intends to surrender or retain such property and must file and perform on her intention within a certain time frame. If a debtor fails to timely meet those obligations, the automatic stay terminates and the property is removed from the estate unless the chapter 7 trustee obtains a determination that the property is of consequential value or benefit to the estate.
In this case, the debtor did not file a statement of intention with respect to personal property that was pledged to a creditor and the chapter 7 trustee did not seek a determination that the property was of value or benefit to the estate. However, the chapter 7 trustee appeals the bankruptcy court’s ruling that §362(h) terminated the automatic stay on all of the debtor’s personal property secured by the creditor’s claim and not just on personal property scheduled as securing the claim.
Issue: Whether § 362(h) terminates the automatic stay on all personal property of the estate pledged to secure a scheduled debt or only terminates the stay on personal property specifically identified in a debtor’s schedules as securing the debt.
Affirmed.