Bankruptcy - Johnson v. First National Bank of Montevideo: The Effect of Bankruptcy on a Statutory Redemption Period

Abstract

INTRODUCTION |In Johnson v. First National Bank of Montevideo the United States Court of Appeals, Eighth Circuit, was faced with deciding to what extent a bankruptcy court may toll a state created right of redemption following a foreclosure sale. The Eighth Circuit was the first court of appeals to contend with the issue since the revision of the Bankruptcy Code in 1978. The decisions of the district courts and the bankruptcy courts that have heard similar cases differ widely. |The resolution of this issue depends upon clearly defining the various property interests of the parties pursuant to state law and then viewing those interests in light of the applicable provisions of the Bankruptcy Act of 1978 (the Code). The courts which have resolved this issue have found three Code provisions relevant: 11 U.S.C. §§ 105,6 108, 7 and 362.8...