Levy v. Haake

Citations

• 53 Cal. 267

Syllabus

<p>Mortgage—Foreclosure Pending Bankruptcy Proceedings. — Where a creditor of a bankrupt, whose claim is secured hy a mortgage, has gone into the United States District Court as a Court of Bankruptcy, proved his claim and subjected it to the jurisdiction of that Court; and the Bankruptcy Court has, hy ah order to which the creditor was a party, made on application of another creditor having a prior lien on the mortgaged premises, directed a sale of the premises, the proceeds thereof beyond the sum admitted to he secured hy the prior lien, “to abide a further hearing” between the two claimants ; the mortgagee cannot, after the sale, foreclose his mortgage in a District Court of the State, while the proceedings in respect to the disposition of the proceeds of the sale are still pending in the Bankruptcy Court.</p>