Case 12-46965

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UNITED STATES BANKRUPTCY COURT DISTRICT OF MINNESOTA

In re:

BKY. No . : 12-46965 GFK STEVEN F. MELDAHL,

Debtor. Chapter 11

NOTICE OF HEARING AND MOTION FOR RELIEF FROM AUTOMATIC STAY TO: PARTIES IN INTEREST AS SPECIFIED JN LOCAL RULE 9013-3.

I.
requ es ted

JSRS Ca pital , LLC, by its undersigned attorney, moves the Court for the relief

below and gives notice of hearing h erewith.

The Court will hold a hearing on this motion at 10:30 a.m. on July 9th, 2013, in

2.

Courtroom No. 2A, at the United States Courthouse, at 316 North Robert S tr eet , St. Paul, Minnesota 55101, b e fore the Honorable Gregory F. Kishel.

3.

Any response to this motion must be filed and served not later than July 4, 2013,

which is five days before the time set for the hearing (including Saturdays, Sw1days, and

h ol idays) .

UNLESS A RESPONSE OPPOSING THE MOTION IS TIMELY FILED, THE

COURT MAY GRANT THE MOTION WITHOUT A HEARING. 4. This court has jurisdiction over this motion pursuant to 28. U.S.C. 157 and

1334, Fed. R. Bankr. P. 5005 and Loc al Rule 1070-1. This proceeding is a core proc eeding. The petition commen cing this Chapter 11 case was filed on December 12, 2012. pending in this court. 5. This motion aris es under 11 U.S.C. 362, and Fed. R. Bankr. P. 4001. This

The case is n ow

motion is filed under Fed. R. Bankr. P. 9013 a nd 9014 and Local Rules 9006-1 and 9013-1 through 9013-3.

Movan t requests relief from the autom ati c "'l"'

stay

of 11 U. S . C.

362 (a) as

it

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applies to real property owned by the debtor located at 2815 14th A venue South, Minneapolis, Minnesota 55407 and legally described as the South Yi of Lot 8, Block 2., Merriam and Shaw's Addition to Minneapolis, Hennepin County, Minnesota (the "2815 Property").
6.

On May 24, 2012, SJM Properties, Inc. borrowed the principal amount of

$75,000.00 from JSRS Capital, LLC as evidenced by the Promissory Note attached hereto as Exhibit A. 7.

To secure repayment of the Note, the debtor pledged the 2815 Property and the

425 Property to JSRS Capital, LLC as collateral. Attached hereto as Exhibits B is a true and

correct copy of the recorded mortgage against the 2815 Property executed by the debtor and his wife Claudia Meldahl.
8. 9. 10.

Debtor filed his Chapter 11 case on December 12, 2012.

Ms. Claudia Meldahl has not filed for protection from creditors.

The Promissory Note required 10 monthly payments of $8,625.00 which were

made until the debtor filed this case on December 12, 2012. The Debtor made half payments in February and March 2013 but has made no further payments. On or about April 26, 2013, JSRS Capital, LLC sent a Notice of Default to the borrower, SJM Properties, Inc. giving SJM Properties, Inc. fifteen (15) days to cure the default by payment of the then outstanding balance of $35,724.00. Attached hereto as Exhibits C is a true and correct copy of the April 26, 2013 Notice of Default. SJM Properties, Inc. failed to cure the defaulted triggering JSRS Capital,

LLC's default remedies pursuant to the Promissory Note and Mortgages.

11. Jn his motion to establish values on January 10, 2013, the debtor testified under

oath that the value of the 2815 Property was $50,000.00. As of July 9, 2013, the balance on the

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Promissory Note due and owing will be $45,240.22 and the debtor owes $9,644.00 to Hennepin County which debt is also secured by the 2815 Property.

12.

JSRS Capital, LLC intends to foreclose its mortgage against the 2815 Property

and the costs of such sale will be roughly $5,000.00. Thus, the total amount of the debt secured by the 2815 Property will be at least $59,884.22 by the time of any sheriff's sale of the 2815 Property.

13. 14. 15.

Accordingly, the debtor has no equity in the 2815 Property. The debtor does not claim his equity in the Properties as exempt. Debtor has represented to this Honorable Court that his average monthly income

is $13,143.00 and that his average monthly expenses are $13,143.00 which does not include monthly payments on the Promissory Note. Accordingly, the debtor does not have enough

income to cure the default in the Promissory Nole or service the debt secured by the 2815 Property.

16.

The Debtor's schedules show that his Total Assets are $4,913,930.75 and his Because the 2815 Property is only $50,000.00 of the

Total Liabilities are $3,301,495.89.

Debtor's total assets, the 2815 Property is not necessary or essential for a successful reorganization.

17.

Despite filing for relief over six (6) months ago, the Debtor has yet to propose a

reorganization plan.

18.

By reason of the foregoing, good cause exists to lift the automatic stay imposed

by 11 U.S.C. 362(a) to allow the movant to pursue its remedies under state law. WHEREFORE, Movant moves the court for an order pursuant to 11 U.S.C. 362(d), granting relief from the automatic stay with respect to the 2815 Property so that Movant may

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pursue its rights under its Mortgages and applicable state law or, in the alternative, for such other relief as may be just and equitable. Dated: June 25, 2013 MORRISON SUND PLLC

le/ Ryan R. Drever Jane S. Welch (#0141380) Ryan R. Dreyer (#0332252) 5125 County Road 101, Suite 200 Minnetonka, MN 55345 (952) 975-0050 (phone) (952) 975-0058 (fax) ATTORNEYS FOR MOVANT JSRS CAPITAL, LLC

TIDS IS A COMMUNICATION FROM A DEBT COLLECTOR.

"'4"'

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UNITED STATES BANKRUPTCY COURT DISTRICT OF MINNESOTA

ln re: STEVEN F. MELDAHL,

BKY. No.: 12-46965 GFK Chapter 11

Debtor.

VERIFICATION

I, Steven M. Berchild, Chief Manager of JSRS Capital, LLC, declare under penalty of perjury that I have read the Notice of Hearing and Motion and the accompanying Memorandum

of Law and the facts contained in said Notice of Hearing and Motion and Memorandum of Law
are true and correct to the best of my knowledge, information and belief.

Dated: June 25, 2013

JSRS CAPITAL, LLC

Its: Chief Manager

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