Groveland, Inc. v. O'Malley

The trial court granted a judgment of foreclosure and appellant filed a timely mo*516tion for rehearing. Appellant filed a petition in bankruptcy, which was later dismissed. The foreclosure sale was rescheduled and the property was sold, without the trial court having ruled on the motion for rehearing.

The effect of the petition in bankruptcy was to impose a stay of the foreclosure proceeding, 11 U.S.C. § 362 (1978), which stay dissolved when the bankruptcy petition was dismissed. At that time the foreclosure proceeding remained in the same status it had occupied prior to the bankruptcy stay. At…