(Bankr. W.D. Ky. Dec. 17, 2014)
The bankruptcy court dismisses the lien avoidance action for lack of jurisdiction. The defendant obtained an order abandoning the trustee’s interest in and granting stay relief with respect to the debtors’ manufactured home on which the defendant claimed a lien. The debtors then filed the adversary proceeding, seeking to avoid the lien for failure to properly perfect the lien, and filed a motion to reconsider the court’s order granting stay relief. The court granted the motion to reconsider, leaving the stay in place pending further orders of the court. The defendant moved to dismiss the adversary proceeding, arguing the debtors did not have standing to pursue the avoidance action. The court granted the motion, but did so on the basis that it had ordered the trustee’s interest in the property abandoned. Thus, because the property was abandoned and no longer property of the estate, the court had no jurisdiction over it. Opinion below.