Automatic Stay

A Lawsuit to Collect a ‘DSO’ Runs the Risk of Violating the Automatic Stay

Although collecting a ‘DSO’ from non-estate property is permitted by Section 362(b)(2)(B), a district judge says that an in personam suit against the debtor can violate the automatic stay.

Renewing a Title Loan Just Before Chapter 13 Didn’t Make the Filing in Bad Faith

Ruling the other way would have barred chapter 13 filings after renewing title loans.

Benchnotes May 2023

May 2023

Borrego Adds a New Tool to the Health Care Debtor’s Toolbox

May 2023

Dismissal Isn’t Mandatory if a New Filing Is Within 180 Days of a Voluntary Dismissal

Courts are split on whether Section 109(g)(2) mandates dismissal whenever an individual or family farmer refiles within 180 days, regardless of whether a lift-stay motion prompted dismissal of the first case.

Seventh Circuit Upholds $9.5 Million in Sanctions for Violating a Plan Injunction

When there was a knowing violation of injunctions in the plan and confirmation order, the Seventh Circuit said that the appeal bordered on frivolous.

Stay Violator Held Liable for Debtor’s Attorneys’ Fees Incurred to Collect Damages

When a stay violator refused to reimburse debtor’s counsel for fees to stop the stay violation, Judge Rebecca Connelly awarded attorneys’ fees for time spent to collect attorneys’ fees.

Third Circuit Reverses and Dismisses J&J’s ‘Baby Powder’ Chapter 11 Case

Circuit Judge Thomas Ambro prohibits big companies from filing chapter 11 cases absent ‘financial distress.’

Current Events with Bill Rochelle (and Guests!)

Bankruptcy Judge Reflects on ‘Leverage-Shifting’ In Denying a Nondebtor Injunction

Bankruptcy Judge William Lafferty declined (for now) to halt suits against nondebtor affiliates for lack of an adequate record to justify a preliminary injunction.