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ABI Journal

Automatic Stay

Courts Split on Whether Suits in Bankruptcy Court Can Violate the Automatic Stay

A minority of courts hold that a suit in bankruptcy court can violate the automatic stay if based on a claim that could have been brought before bankruptcy and did not arise under the Bankruptcy Code.

Brooklyn Decision Shows Why Litigation Finance Is Risky if the Plaintiff Files Bankruptcy

At least in New York, a litigation finance agreement can’t be written to remove all of the lender’s exposure to the borrower’s bankruptcy.

On Dismissal of a ‘13,’ Barton May (or May Not) Bar Garnishments

Section 1326(a)(2) by itself does not bar garnishment of funds held by a trustee on dismissal before confirmation.

First Circuit Liberally Interprets the Police and Regulatory Stay Exception

The appeals court reviews the ‘totality of the circumstances’ when government action has elements of both regulatory enforcement and furtherance of the state’s pecuniary interest.

Discharge May Be Enforced in Another District, Brooklyn Judge Says

Bankruptcy court has power to entertain a nationwide class action asserting a discharge violation.