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Automatic Stay

Creditor Socked with $41,000 in Sanctions for Filing Trumped-Up Criminal Charges

Bankruptcy Judge Warren makes sure the sanctions won’t be dischargeable if the offending creditor files his own bankruptcy.

4th Circuit
North Carolina
North Carolina Eastern District

Lower Courts Now Disagree on Modifying the Stay Retroactively After Acevedo

Did the Supreme Court’s Acevedo opinion preclude annulling the stay? The Ninth Circuit BAP says ‘no.’

9th Circuit

Seventh Circuit Requires Court Findings for a Plan Provision the Code Allows

The Seventh Circuit opinion raises the question of whether (or when) a court may restrict the use of a provision in a chapter 13 plan that Section 1322(b) permits.

7th Circuit

The Automatic Termination of the Automatic Stay: Not Ready for Prime Time

The Supreme Court declined to decide whether the automatic stay terminates automatically after a repeat filing as to all property or only property of the debtor.

Supreme Court

Appeal Heads Toward the Fourth Circuit on Arbitration of Discharge Violations

Eventually, the Supreme Court will decide whether bankruptcy is a unique exception to the general rule that arbitration agreements are rigorously enforced.

4th Circuit
South Carolina

Second Circuit Nixes Nationwide Class Actions for Discharge Violations

Second Circuit says that later Supreme Court authority did not undermine the appeals court’s prior decision that creditors cannot compel arbitration of discharge violations.

2nd Circuit

Force Majeure Clause Cut an Illinois Debtor’s Rent by 75%

Chicago judge cut rent by 75% after governor prohibited on-premises dining in the debtor’s restaurant.

7th Circuit
Illinois
Illinois Northern District

Liquidating in Chapter 11 Won’t Stop an EEOC Suit for Employment Discrimination

Magistrate judge decided that the regulatory power exception to the automatic stay allows the EEOC to proceed, but he stayed the suit by the former employee seeking damages.

11th Circuit
Georgia
Georgia Northern District

Postpetition Default on a Mortgage Is a Prepetition Debt for Setoff Purposes

The obligation on a mortgage is incurred when the mortgage is granted, even though the payment default may occur after filing, Judge Thuma says.

10th Circuit
New Mexico

Judge Christopher Klein Takes Sides on a Circuit Spilt Coming to the Supreme Court

Judge Klein’s opinion reads like an amicus brief urging the Supreme Court to grant ‘cert’ and resolve a circuit split by taking sides with the majority on Section 362(c)(3)(A).

9th Circuit
California
California Eastern District
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