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Automatic Stay Chapter 7

Jones Day

Tenth Circuit: Bankruptcy Court Did Not Relinquish Its Jurisdiction by Granting Relief from Automatic Stay

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Ever since Congress amended the Bankruptcy Code in 1984 to remedy the U.S. Supreme Court's 1982 ruling declaring the jurisdictional groundwork of title 11 unconstitutional, there have been lingering questions regarding the...more

Ward and Smith, P.A.

A Primer for Creditors Navigating the Bankruptcy System

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Bankruptcy filings affect businesses across America. The Bankruptcy Code is complex and difficult to navigate.  But used properly, it can helpcreditors to minimize losses when a customer files bankruptcy. ...more

Ward and Smith, P.A.

740,000 Reasons to Think Twice Before Putting a Company in Bankruptcy

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A recent decision from a bankruptcy court in Delaware provides a cautionary tale about the risks of involuntary bankruptcy.  In the Delaware case, the debtor managed a group of investment funds. The business was all but...more

Jenner & Block

Recent Developments in Bankruptcy Law, July 2023

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1. AUTOMATIC STAY - 1.1 Covered Activities - 1.1.a Bankruptcy court properly enjoins actions against nondebtor entity after divisional merger. The debtor was the product of a divisional merger under Texas law, which...more

Jenner & Block

April 2023 - Recent Developments in Bankruptcy Law

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AUTOMATIC STAY - 1.1 Covered Activities 1.1.a Court denies injunction against actions involving debtors’ affiliates. Shortly after filing their chapter 11 cases, the debtors in possession sought, in the alternative,...more

Patterson Belknap Webb & Tyler LLP

Creditor that Filed an Excessive Claim Draws Court’s Rebuke and Possible Sanctions

This post is about a junkyard, hogs getting slaughtered, and a bankruptcy judge poised to sanction a creditor and her counsel. The message from the case to would-be claimants in other cases is simple: do not “overreach.” In...more

Maynard Nexsen

Creditors Beware: Bankruptcy Stay May Shield Property Possessed but Not Owned by Debtor

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The automatic stay triggered by a bankruptcy filing may protect the debtor’s residence even if the debtor does not own the property, according to a recent decision from a New York-based federal appeals court....more

Foley & Lardner LLP

11 Key Strategies to Protect Your Company’s Supply Chain and Mitigate Risks Against Financially Distressed Customers and Suppliers

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As we pass the midpoint of 2022 and the world expresses a collective sigh of relief that the worst of the COVID-19 pandemic seems to be behind us, a perfect storm of extraordinary factors is creating conditions for financial...more

Arnall Golden Gregory LLP

Lender Liability Is Not Dead: A Recent Case Presents a Warning for Lenders (and a Roadmap for Borrowers)

A recent decision from the U.S. Bankruptcy Court for the Northern District of Texas illustrates that aggressive lender action can lead to “lender liability” in a loan workout. Bailey Tool & Mfg. Co., et al. v. Republic Bus....more

Bradley Arant Boult Cummings LLP

Bradley’s Bankruptcy Basics: Automatic Stay and Discharge Injunction Violations

The automatic stay is immediately effective when a debtor files a petition for bankruptcy relief. The scope of the automatic stay is broad. The stay applies to all creditors and prohibits both formal and informal actions...more

Bradley Arant Boult Cummings LLP

Bradley’s Bankruptcy Basics: Automatic Stay Considerations When Businesses File for Bankruptcy

The automatic stay is a procedural tool in a bankruptcy case that effectively halts efforts by creditors to collect on a debtor’s outstanding obligations. As discussed in more detail in our prior post, immediately upon the...more

Holland & Knight LLP

Preference Claims, Clawbacks in Bankruptcy Can Disrupt a Construction Project

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Because of the injunction that begins as soon as a debtor files for Chapters 7, 11 or 13 bankruptcy – called the automatic stay – creditors and collection agencies are prevented from seeking payment from the debtor....more

Nelson Mullins Riley & Scarborough LLP

It Is, In Fact, Expensive To Be Erika Jayne

“It’s expensive to be me / Looking this good don’t come for free.” —Erika Jayne, “XXpen$ive” - Real Housewives of Beverly Hills cast member Erika Girardi, more commonly known as Erika Jayne, is the latest example of just how...more

Burr & Forman

Toxins-Are-Us: Bankruptcy Treatment of Environmental Liabilities

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Since taking office, President Joseph R. Biden has confirmed his commitment to addressing environmental issues. On April 9, 2021, he proposed allocating $14 billion toward initiatives to fight climate change, including large...more

Freeman Law

Bankruptcy: The Mechanics of Exemptions and Related Issues

Freeman Law on

Most bankruptcy attorneys have a basic level of understanding of the how exemptions work. At a very broad level, a claim of exemptions removes property of a consumer debtor (note that business debtors are not afforded...more

Bradley Arant Boult Cummings LLP

5 Key Takeaways from Bradley’s Bankruptcy Basics, Part 1

The early bird gets the worm. Do your homework upon receiving notice of a bankruptcy filing, and review the account. Initial questions include: Is your debt secured or unsecured? What is the outstanding debt owed? Are there...more

Bradley Arant Boult Cummings LLP

Bradley’s Bankruptcy Basics: Chapter 7 Bankruptcy — Liquidation

Chapter 7 bankruptcy cases are straight liquidations sought by debtors who wish to have most or all of their debts discharged. In Chapter 7 cases, the Chapter 7 trustee obtains control over the debtor’s assets and evaluates...more

Buchalter

Hotel Bankruptcies: 8 Key Issues for Hospitality Advisors

Buchalter on

The COVID-19 pandemic has forced many hospitality professionals and their clients to confront bankruptcy, insolvency, and loan workout issues for the first time since the Great Recession. Chapter 11 presents a host of unique...more

Ward and Smith, P.A.

40,979 Reasons Not to "Press Charges" Against a Debtor in Bankruptcy

Ward and Smith, P.A. on

It is a cardinal sin to attempt to collect a debt or repossess collateral after a borrower files bankruptcy. Bankruptcy triggers the automatic stay – a command, not a suggestion, that collection activity ceases. This is a...more

Shutts & Bowen LLP

Post-Bankruptcy Issues for Commercial Landlords – The Automatic Stay in Chapter 11 Cases

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When a Chapter 11 bankruptcy case is filed, a commercial landlord with a defaulting or even a non-defaulting tenant may ask – now what? In this post we will address the automatic stay and its injunction against certain...more

Spilman Thomas & Battle, PLLC

Top 10 Bankruptcy Truths for Creditors to Know

Much of the bankruptcy chatter arising from the pandemic world in which we find ourselves is now focusing on the cascade of new bankruptcy cases that are predicted to arrive soon. We have already seen the effects of closed...more

Ward and Smith, P.A.

Can a Creditor Violate the Automatic Stay in Bankruptcy by Doing Nothing?

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Filing a bankruptcy petition automatically halts efforts to collect pre-petition debts from the debtor outside of bankruptcy. If a creditor wants to continue a lawsuit against a debtor outside of bankruptcy, repossess...more

Patterson Belknap Webb & Tyler LLP

Bankruptcy Court Holds Automatic Stay Inapplicable to Removal of State Court Action Against Debtor

When a party files for bankruptcy, the Bankruptcy Code imposes an automatic stay of litigation against a debtor for claims arising prior to the commencement of the bankruptcy case. See 11 U.S.C. § 362(a). Where there is a...more

Seyfarth Shaw LLP

Federal Court Rules That An EEOC Lawsuit Is Not Barred By Bankruptcy Code’s Automatic Stay

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Seyfarth Synopsis: The government’s anti-discrimination watchdog can be extremely aggressive in pursuing discrimination claims, including pursuing those claims after an employer files for bankruptcy. ...more

Patterson Belknap Webb & Tyler LLP

Bankruptcy Court Finds Arbitration Clause in Consumer Loan Contract to be Sufficient Cause to Grant Relief from Automatic Stay

When a bankruptcy petition is filed, an automatic stay comes into effect staying proceedings against the debtor or the debtor’s property. 11 U.S.C. § 362(a). The stay centralizes litigation regarding the debtor and its...more

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