The federal and California moratoria on evictions during the Covid-19 pandemic did not apply in a bankruptcy case, “even if the property in question is [the debtor’s] residence,” according to Bankruptcy Judge Robert Kwan of Los Angeles.
The individual debtor had filed a chapter 7 petition in 2014. The trustee reopened the case to administer a two-unit condominium on Wilshire Blvd. in Los Angeles that the debtor had not disclosed. In his January 8 opinion, Judge Kwan said that the debtor resided in the units.
Previously, Judge Kwan had authorized the sale of the property, but the debtor did not vacate. So, the trustee filed a motion for a writ of execution directing the U.S. Marshall to remove the debtor from the premises.
The debtor raised objections, including the eviction moratoria under federal and California law. The arguments didn’t hold water.
Judge Kwan said that the debtor had proffered no evidence that he was a person covered by the moratorium issued by the Centers for Disease Control. The debtor had not submitted a declaration stating, among other things, that his annual income was less than $99,000 and that his failure to make housing payments was due to a substantial loss of income.
Even if the debtor had given the required declaration, Judge Kwan said,
the requirements and purpose of the CDC Order are not applicable in this bankruptcy case. According to the language of the CDC order, persons may “be evicted for reasons other than not paying rent or making a housing payment.” CDC Order, Federal Register, Vol. 85, No. 731, September 4, 2020, Notices, pages 55292–55293.
“This is not a situation where Debtor is unable to pay rent or lost his source of income due to Covid-19,” Judge Kwan said. Rather, the debtor “has a statutory duty to cooperate with the trustee and turn over the real property.”
Similarly, the California moratorium did not apply under Assembly Bill 3088, “even if the property in question is [the debtor’s] residence,” Judge Kwan said.
The state moratorium “only applies to renters, small landlords, and homeowners who are unable to pay their rent or mortgage due to the Covid-19 pandemic. Thus, this law does not apply to a debtor who is required to turn over property of the bankruptcy estate,” Judge Kwan ruled.
Judge Kwan went on to say that the “Debtor is not a tenant who is being evicted for nonpayment of rent to a landlord and who may invoke the protection of [the] eviction moratorium of California AB 3088 due to a financial hardship caused by Covid-19.” Instead, he said, the “Debtor is . . . being required to turn over the Real Property pursuant to an order of the court enforcing the statutory turnover requirements of 11 U.S.C. § 542(a).”
Judge Kwan overruled the debtor’s objection and entered a turnover order along with a writ of execution.
The federal and California moratoria on evictions during the Covid-19 pandemic did not apply in a bankruptcy case, “even if the property in question is [the debtor’s] residence,” according to Bankruptcy Judge Robert Kwan of Los Angeles.
The individual debtor had filed a chapter 7 petition in 2014. The trustee reopened the case to administer a two-unit condominium on Wilshire Blvd. in Los Angeles that the debtor had not disclosed. In his January 8 opinion, Judge Kwan said that the debtor resided in the units.
Previously, Judge Kwan had authorized the sale of the property, but the debtor did not vacate. So, the trustee filed a motion for a writ of execution directing the U.S. Marshall to remove the debtor from the premises.
The debtor raised objections, including the eviction moratoria under federal and California law. The arguments didn’t hold water.
Judge Kwan said that the debtor had proffered no evidence that he was a person covered by the moratorium issued by the Centers for Disease Control. The debtor had not submitted a declaration stating, among other things, that his annual income was less than $99,000 and that his failure to make housing payments was due to a substantial loss of income.