Brown v. Dellinger (In Re Brown)

MEMORANDUM-DECISION AND ORDER

MUNSON, Chief Judge.

This is an appeal from a decision of the Bankruptcy Court, Leon J. Marketos, Bankruptcy Judge, declaring that the Bankruptcy Court has exclusive jurisdiction over surplus funds from a pre-petition mortgage foreclosure of the debtor’s property. On February 26, 1982, the Appellate Division of New York State Supreme Court, Fourth Department, held that the funds were not property of the estate and that the bankrupt had no interest in them. Judge Marketos disagreed with the Appellate Division and found that despite her lack of equity in the funds,…