Opinion ID: 1119425
Heading Depth: 2
Heading Rank: 1

Heading: UNDER BAILEY v. CAMPBELL, 862 P.2D 461 (OKLA.1991), A DEED, ISSUED PURSUANT TO JUDICIAL PROCEEDINGS CONDUCTED IN VIOLATION OF AN AUTOMATIC STAY IN BANKRUPTCY, IS VOID.

Text: Hobbs asserts that FHA's title to the land at issue is void because it was issued in violation of an automatic stay in bankruptcy. FHA contends that, under the facts presented, if the deed holder was in actual possession and control of the property, the title to the property may not be attacked on the basis of the deed's validity. Hobbs relies on Bailey v. Campbell, 862 P.2d 461, 467-68 (Okla.1991) for the proposition that the deed, issued in violation of the automatic stay, is void. Bailey presented the question of whether an appeal by a debtor commenced after an automatic stay issued barred a second appeal of the same question once the stay lifted. This Court adopted the majority position in Bailey holding that judicial proceedings undertaken after a party files for bankruptcy and an automatic stay issues are a nullity. This issue is governed by Bailey  the deed, issued in response to the foreclosure action and the sale on execution, is void  it was executed pursuant to judicial proceedings conducted in violation of the automatic stay. [11]