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In re Presidio Bridge Co.

Citations: 124 B.R. 242; 1991 Bankr. LEXIS 242; 1991 WL 25788Docket: Bankruptcy No. 90-30634

Court: United States Bankruptcy Court, W.D. Texas; January 22, 1991; Us Bankruptcy; United States Bankruptcy Court

Narrative Opinion Summary

The United States Department of Transportation, including the Coast Guard, filed a motion to reopen a closed bankruptcy case to lift the automatic stay under 11 U.S.C. § 362(a) concerning a bridge previously owned by the debtor. The United States aims to remove the remaining half of this bridge, which spans the U.S.-Mexico border. However, the bankruptcy court determined that it lacks jurisdiction over the property since the case is closed, and the automatic stay provisions are no longer applicable. Citing established case law, the court ruled that jurisdiction is divested once a bankruptcy case is closed, rendering the motion unnecessary and beyond its authority. Consequently, the motion was dismissed with prejudice.

Legal Issues Addressed

Automatic Stay under 11 U.S.C. § 362(a)

Application: The motion to lift the automatic stay was deemed unnecessary because the automatic stay provisions are not applicable once the bankruptcy case is closed.

Reasoning: The United States Department of Transportation, including the Coast Guard, filed a motion to reopen a closed bankruptcy case to lift the automatic stay under 11 U.S.C. § 362(a) concerning a bridge previously owned by the debtor.

Dismissal with Prejudice

Application: The court dismissed the motion with prejudice, indicating that the matter cannot be brought before the court again.

Reasoning: Consequently, the motion was dismissed with prejudice.

Effect of Closing a Bankruptcy Case

Application: Once a bankruptcy case is closed, the court is divested of jurisdiction, and any motions related to the automatic stay are beyond its authority.

Reasoning: Citing established case law, the court ruled that jurisdiction is divested once a bankruptcy case is closed, rendering the motion unnecessary and beyond its authority.

Jurisdiction of Bankruptcy Courts

Application: The court determined that it lacks jurisdiction over the property involved in the bankruptcy case after the case has been closed.

Reasoning: However, the bankruptcy court determined that it lacks jurisdiction over the property since the case is closed, and the automatic stay provisions are no longer applicable.