Connecticut 2019 Regular Session

Connecticut Senate Bill SB00911 Compare Versions

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Version 2 (New)

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3		-	LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-00911-R01-
4		-	SB.docx
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	3	+	LCO No. 4578 1 of 3
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7		-	General Assembly ~~Substitute~~ Bill No. 911
	5	+	General Assembly Raised Bill No. 911
8	6		January Session, 2019
	7	+	LCO No. 4578
9	8
	9	+
	10	+	Referred to Committee on JUDICIARY
	11	+
	12	+
	13	+	Introduced by:
	14	+	(JUD)
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14	19		AN ACT CONCERNING TH E OPENING OF A JUDGMENT OF STRICT
15	20		FORECLOSURE.
16	21		Be it enacted by the Senate and House of Representatives in General
17	22		Assembly convened:
18	23
19	24		Section 1. Subsection (b) of section 49-15 of the general statutes is 1
20	25		repealed and the following is substituted in lieu thereof (Effective 2
21	26		October 1, 2019): 3
22	27		(b) (1) Upon the filing of a bankruptcy petition by a mortgagor 4
23	28		under Title 11 of the United States Code, that also imposes an 5
24	29		automatic stay pursuant to 11 USC 362(a), and only to the extent the 6
25	30		filing of the bankruptcy petition imposes the automatic stay pursuant 7
26	31		to 11 USC 362(a), any judgment against the mortgagor foreclosing the 8
27	32		title to real estate by strict foreclosure shall be opened automatically 9
28		-	without action by any party or the court, provided, (A) the provisions 10
29		-	of such judgment, other than the establishment of law days, shall not 11
30		-	be set aside under this subsection, [provided] and (B) no such 12
31		-	judgment shall be opened (i) after the title has become absolute in any 13
32		-	encumbrancer or the mortgagee, or any person claiming under such 14
33		-	encumbrancer or mortgagee, or (ii) if the automatic stay pursuant to 11 15
34		-	USC 362(a) does not come into existence upon the filing of the 16
35		-	bankruptcy petition. 17
36		-	(2) Notwithstanding the provisions of this section, no judgment 18 Substitute Bill No. 911
	33	+	without action by any party or the court, provided, the provisions of 10
	34	+	such judgment, other than the establishment of law days, shall not be 11
	35	+	set aside under this subsection, provided no such judgment shall be 12
	36	+	opened (A) after the title has become absolute in any encumbrancer or 13
	37	+	the mortgagee, or any person claiming under such encumbrancer or 14
	38	+	mortgagee, and (B) if the automatic stay pursuant to 11 USC 362(a) 15 Raised Bill No. 911
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43		-	shall be opened, despite the filing of a bankruptcy petition, if (A) a 19
44		-	prior order granting in rem relief from the automatic stay has been 20
45		-	issued pursuant to 11 USC 362(d)(4) in favor of the plaintiff or the 21
46		-	plaintiff's predecessor in interest regarding the subject property, (B) 22
47		-	such order has been recorded on the appropriate land records, and (C) 23
48		-	such in rem relief is still binding on the subject property at the time of 24
49		-	the filing of the bankruptcy petition. 25
50		-	(3) The mortgagor shall file a copy of the bankruptcy petition, or an 26
51		-	affidavit setting forth the date the bankruptcy petition was filed, with 27
52		-	the clerk of the court in which the foreclosure matter is pending. 28
53		-	[Upon] 29
54		-	(4) If an automatic stay under 11 USC 362 was applicable, upon the 30
55		-	termination of the automatic stay authorized pursuant to 11 USC 362, 31
56		-	the mortgagor shall file with such clerk an affidavit setting forth the 32
57		-	date the automatic stay was terminated. Any party, person or entity 33
58		-	taking title by virtue of a judgment of strict foreclosure may, at any 34
59		-	time, file with the court an affidavit or other document that evidences 35
60		-	that the judgment was not opened pursuant to the provisions of this 36
61		-	subsection, notwithstanding the filing of a bankruptcy petition by a 37
62		-	mortgagor. 38
	42	+	LCO No. 4578 2 of 3
	43	+
	44	+	does not come into existence upon the filing of the bankruptcy 16
	45	+	petition. 17
	46	+	(2) If a mortgagor files a bankruptcy petition under Title 11 of the 18
	47	+	United States Code that does not impose an automatic stay pursuant to 19
	48	+	11 USC 362(a), but a bankruptcy court subsequently orders a stay 20
	49	+	during the pendency of the bankruptcy petition, and title to the subject 21
	50	+	real property has not yet vested in the plaintiff, then upon the 22
	51	+	imposition of the stay, any judgment against the mortgagor foreclosing 23
	52	+	the title to real estate by strict foreclosure shall be opened 24
	53	+	automatically without action by any party or the court, provided, the 25
	54	+	provisions of such judgment, other than the establishment of law days, 26
	55	+	shall not be set aside under this subsection, provided no such 27
	56	+	judgment shall be opened after the title has become absolute in any 28
	57	+	encumbrancer or the mortgagee, or any person claiming under such 29
	58	+	encumbrancer or mortgagee. 30
	59	+	(3) Notwithstanding the provisions of this section, no judgment 31
	60	+	shall be opened, despite the filing of a bankruptcy petition, if (A) a 32
	61	+	prior order granting in rem relief from the automatic stay has been 33
	62	+	issued pursuant to 11 USC 362(d)(4) in favor of the plaintiff or the 34
	63	+	plaintiff's predecessor in interest regarding the subject property, (B) 35
	64	+	such order has been recorded on the appropriate land records, and (C) 36
	65	+	such in rem relief is still binding on the subject property at the time of 37
	66	+	the filing of the bankruptcy petition. 38
	67	+	(4) The mortgagor shall file a copy of the bankruptcy petition, or an 39
	68	+	affidavit setting forth the date the bankruptcy petition was filed, with 40
	69	+	the clerk of the court in which the foreclosure matter is pending. 41
	70	+	[Upon] (5) If an automatic stay under 11 USC 362 was applicable, 42
	71	+	upon the termination of the automatic stay authorized pursuant to 11 43
	72	+	USC 362, the mortgagor shall file with such clerk an affidavit setting 44
	73	+	forth the date the automatic stay was terminated. Any party, person or 45
	74	+	entity taking title by virtue of a judgment of strict foreclosure may, at 46
	75	+	any time, file with the court an affidavit or other document that 47 Raised Bill No. 911
	76	+
	77	+
	78	+
	79	+	LCO No. 4578 3 of 3
	80	+
	81	+	evidences that the judgment was not opened pursuant to the 48
	82	+	provisions of this subsection, notwithstanding the filing of a 49
	83	+	bankruptcy petition by a mortgagor. 50
	84	+	(6) After an automatic stay is terminated, the court is limited to 51
	85	+	resetting the law days and making appropriate findings for the 52
	86	+	purposes of determining redemption under section 49-20. 53
63	87		This act shall take effect as follows and shall amend the following
64	88		sections:
65	89
66	90		Section 1 October 1, 2019 49-15(b)
67	91
68		-	JUD Joint Favorable Subst.
	92	+	Statement of Purpose:
	93	+	To clarify state law with respect to reopening a judgment of strict
	94	+	foreclosure when a bankruptcy petition has been filed.
	95	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	96	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	97	+	not underlined.]
69	98