IN RE FIRST ALLIANCE MORTG. CO.

BAP No. CC-00-1541-MaMoP. Bankruptcy No. SA 00-12370 LR.

263 B.R. 99 (2001)

In re FIRST ALLIANCE MORTGAGE COMPANY, Debtor. Commonwealth of Massachusetts, Appellant, v. First Alliance Mortgage Company; Creditors' Committee; Borrowers' Committee; United States Trustee, Appellees.

United States Bankruptcy Appellate Panel of the Ninth Circuit.

Filed May 9, 2001.


Attorney(s) appearing for the Case

Patrick J. Evans, Rein, Evans & Sestanovich, LLP, Los Angeles, CA, Karen R. Cordry, National Association of Attorneys General, Washington, DC, for Appellant.

William N. Lobel, Irell & Manella, LLP, Newport Beach, CA, for Appellees.

Before MARLAR, MONTALI, and PERRIS, Bankruptcy Judges.


OPINION

MARLAR, Bankruptcy Judge.

INTRODUCTION

The bankruptcy court ruled that monetary claims asserted in a state court consumer protection action against the debtor were not exempt from the automatic stay, under the exception for an action to enforce a governmental unit's police or regulatory power. The Commonwealth of Massachusetts ("Commonwealth") appealed, and we REVERSE that portion of the order.1

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