2008-00026925-CL-CL

Discover Bank vs. Erica Valdez

Nature of Proceeding:   Notice of Hearing on Claim of Exemption

Filed By:  Yalon Jr., Jerome M.

The automatic stay provision of the Bankruptcy Act is designed to shield the debtor
from the burdens of litigation during the processes of bankruptcy.” Seiko Epson Corp.
v. Nu-Kote Int’l., Inc., 190 F.3d 1360, 1364 (Fed. Cir. 1999) (citing Fortier v. Dona
Anna Plaza Partners , 747 F.2d 1324, 1330 (10th Cir. 1984)).

It appears that an automatic bankruptcy stay prevents the Court from making any
determination on the pending Claim of Exemption.

On June 17, 2014, the Court continued this hearing to June 30, 2014, to provide the
debtor an additional opportunity to file documentary evidence supporting her claimed
exemptions.  That same day, the debtor seeking the exemption, Erica Valdez,  filed a
five-page document.  One of these pages is a Notice of Bankruptcy Case Filing,
reflecting that Erica Valdez filed for Chapter 7 bankruptcy in the Eastern District of
California on June 17, 2014 at 12:05 p.m, Bankruptcy Case No. 14-26334.

11 U.S.C. § 362(a)(1) automatically stays actions when one party files for bankruptcy.
“The automatic stay provisions of the Bankruptcy Code prohibit the continuation of a
judicial action against the debtor that was commenced before the bankruptcy; the
Code also prohibits ‘any act to obtain possession of property of the estate . . . or to
exercise control over the property of the estate.” In re White, 186 B.R. 700, 703 (B.A.P.
9th Cir. 1995) (internal citations omitted). “The automatic stay provision of the
Bankruptcy Act is designed to shield the debtor from the burdens of litigation during
the processes of bankruptcy.” Seiko Epson Corp. v. Nu-Kote Int’l., Inc., 190 F.3d 1360,             1364 (Fed. Cir. 1999) (citing Fortier v. Dona Anna Plaza Partners, 747 F.2d 1324,
1330 (10th Cir. 1984)). “As a general rule, “[t]he automatic stay of [§] 362(a) protects
only the debtor, property of the debtor or property of the estate.

The Court takes judicial notice of the Notice of Bankruptcy and orders this action
STAYED pending completion of the bankruptcy proceedings.  If the creditor has
doubts about the authenticity/validity of the Notice of Bankruptcy filed in this case on
June 17, 2014, it may request a hearing to address the matter further.

This minute order is effective immediately.  No formal order pursuant to CRC rule
3.1312 or other notice is required.