Bankr. E.D.N.C.: In re McClam- Consent Order In Prior Case is Not Res Judicata in Subsequent Bankruptcy

Summary: In the Debtor’s first Chapter 13 case, the Debtor and his homeowner’s association entered into a consent order denying the homeowner’s motion for relief, subject to the Debtor complying with specific conditions. Failure to comply would result in the lifting of the automatic stay. The Debtor’s bankruptcy was shortly thereafter dismissed and the Debtor refiled. The homeowner’s association contended that the consent order in the previous case was res judicata and it was thereby entitled to relief from the automatic stay in the second case. The bankruptcy court, however, found that the consent order in the previous case was not a final adjudication in the present case, as “[t]he property of the estate and automatic stay in this case are distinct from the debtor’s previous case and not merely a revival of the prior proceedings.” For a copy of the opinion, please see: McClam- Consent Order In Prior Case is Not Res Judicata in Subsequent Bankruptcy.pdf