Case No. 08-42277 J.United States Bankruptcy Court, N.D. California.
August 13, 2008
MEMORANDUM AND ORDER
EDWARD JELLEN, Bankruptcy Judge
The above debtors have moved this court for an order setting aside a trustee’s sale of certain property situated in Las Vegas, Nevada. On July 7, 2008, the court entered an order lifting the automatic stay under Bankruptcy Code § 362(a) with respect to the subject property. The sale occurred on or about August 5, 2008, approximately one month later. The debtors’ motion alleges that the debtors converted their chapter 7 case to chapter 11 on July 29, 2008, before the trustee’s sale, and that the sale was therefore invalid.
The court will deny the motion. The conversion of a bankruptcy case from one chapter to another does not impose a new automatic stay if the automatic stay had been lifted prior to the conversion.
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Bankruptcy Code § 362(a). In re Ramirez, 188 B.R. 413 (9th Cir. BAP 1995); In re State Airlines, Inc., 873 F.2d 264 (11th Cir. 1989). Consequently, the trustee’s sale was not conducted in violation of the automatic stay.
Therefore, it is ordered that the debtors’ motion is denied.
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