In Re Elna Kay Brooks, Debtor. Nancy James, Trustee v. Washington Mutual Savings Bank

EUGENE A. WRIGHT, Circuit Judge:

We must determine whether the trustee of a wife’s subsequent bankruptcy may avoid a deed of trust rerecorded in violation of the automatic stay of her husband’s earlier bankruptcy.

I

On October 1, 1984, Washington Mutual Savings Bank loaned $59,923 to Wiley and Elna Brooks. The Bank secured the loan by a deed of trust on the Brooks’ property. The deed was executed, signed by the Brooks, and recorded on October 3, 1984. The Bank discovered later that the property description was incorrect, changed it, and rerecorded the deed on June 5, 1985.

On June 3, 1985, two…