File: LVCrt-15

United States Bankruptcy Court
Northern District of California

Chapter 11 Case No. 91-34251TC, RS No. 92 0028 TC
In Re: Anton LaVey, Debtor
Social Security #552-44-5584

Date: March 27, 1992
Time: 9:00 AM
Judge: Thomas Carlson

I, Jane Grieco, declare as follows:

1. That I am an attorney at law, licensed to practice before all the
courts of the State of California, and attorney for creditor herein,
Diane Hegarty.

2. Elizabeth Benford and myself have represented Diane Hegarty in
her efforts to enforce her rights to one-half of the jointly-owned
real and personal property of herself and the debtor, Anton LaVey,
which they acquired during their 24-year relationship and which was
ordered by the state superior court on August 5, 1991.

3. On August 5, 1991 Diane Hegarty obtained judgment in State
Superior Court and was granted partition of that real property, one-
half interest in the jointly-owned personal property, royalties,
back rent, related expenses, and punitive damages, as well as
attorney's fees and costs for a total judgment of $536,500 plus
interest. The debtor has sought all available means to avoid paying
the judgment, including the filing of this petition with the
bankruptcy court.

4. On December 10, 1991 I attended the creditor's meeting on this
matter and questioned the debtor concerning the assets and
liabilities indicated in his petition. A written transcript of that
hearing is attached hereto as Exhibit #D and made a part hereof.

5. At the creditor's meeting the debtor declared, under penalty of
perjury, that:

-- a. Some of the jointly-owned personal property which is the
subject of the judgment against him no longer exists, or has been
given to others.

-- b. Five other persons currently reside on the premises without
paying rent or contributing to the upkeep and maintenance of the

-- c. The real property, which is the principal asset of the
parties, is in need of substantial repairs, as evidenced by an
appraisal of $295,000 on the property. The creditor had an appraisal
of the property in July of 1991 of $420,000. Creditor has not
received any payments under the Superior Court judgment, nor has
debtor proposed any means of adequately protecting creditor's
interest in the real and/or personal property. Creditor's secured
position is deteriorating because the collateral is decreasing in
value and the debt is increasing through the accrual of interest.

6. Debtor's petition claims a $100,000 exemption of his interest in
the real property, yet his petition indicates a gross income of
$23,369.79 for the period 1/91 through 9/30/91, which clearly
exceeds the requirements of C.C.P. Section 704.703(a)(3)(C), which
allows for such exemption when the debtor is over 55 years of age
and his gross income is less than $15,000.

7. The debtor's petition also indicates that no income is
forthcoming from the Church of Satan, when this is the very entity
which seeks bankruptcy protection. The debtor's income is generated
from royalties on the publications authored by both the debtor and
creditor and indicated in the petition. Either this entity does
generate income, which it did for the years from 1966 until 1984
when the creditor was ousted from the property, which debtor failed
to report, or it does in fact generate no income, in which case it
needs no protection. The real property which has been the
headquarters of the Church of Satan for the past 24 years is not
necessary to reorganization, and, given the state court judgment
against him, debtor has no equity, save his homestead exemption, in
the property.

8. On February 24, 1992 this court ordered the parties to reach a
stipulation concerning the listing of the subject property for sale,
and that said stipulation be filed with the court no later than
March 15, 1992.

9. On March 3, 1992 I mailed debtor's counsel a stipulation, listing
agreement, and disclosure statement, and requested that these
documents be signed and returned to me so that they could be filed
with the court no later than March 15, 1992.

10. On March 9, 1992 I received a letter from debtor's counsel
advising that the stipulation concerning the listing agreement
should include a provision that creditor will not move to convert
this matter to Chapter 7. This provision was not part of the court's
order on February 24, 1992. In fact the court specifically stated
that if a signed stipulation were not filed by March 15, 1992, the
court would allow creditor to renew her motion for relief on ten
days' notice and relief would be granted or the matter converted to
Chapter 7. Neither debtor nor his counsel have returned the listing,
disclosure, or stipulation by March 15, 1992 as ordered by this

11. On February 24, 1992 debtor filed a motion to convert this
matter from Chapter 11 to Chapter 7, and creditor concurs and has
filed a response to that motion with the court.

12. Debtor and his counsel have resisted all creditor's efforts to
move this matter ahead. We have not received any offers of adequate
protection to creditor despite our requests for same, and we
therefore specifically request that the court order immediate
payments to creditor of $1,200 per month.

13. Since some of the jointly-owned personal property no longer
exists or has been given to others, creditor is requesting that
debtor be ordered to have an appraisal of all jointly-owned persona
property and provide creditor with a copy of same. Creditor also
requests that debtor be ordered to cease all activity to sell,
transfer, or otherwise destroy the remaining jointly-owned personal

14. In an effort to comply with local bankruptcy rules, I have tried
to reach stipulations with opposing counsel on the exchange of
information and documents pertaining to the jointly-owned property.
I have requested that the debtor:

-- a. indicate which items of the jointly-owned personal property
have been sold and the price received,

-- b. indicate which items have been given away or no longer exist,

-- c. provide a copy of the appraisal on the real property,

-- d. provide income tax returns for 1984 through the present. We
request that the court order debtor to provide this information
immediately to the creditor.

15. Debtor has totally failed to provide creditor with information
necessary for an equitable resolution of this matter, and is wasting
and mismanaging the remaining jointly-owned assets.

I declare under penalty of perjury under the laws of the State of
California that the foregoing is true and correct, and that this
declaration was executed at San Francisco, California on March 16,

/s/ Jane Grieco
Jane Grieco, Attorney for Creditor

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