Violations of the Automatic Stay and the Discharge Injunction
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Automatic Stay
Second Circuit Opinion Raises Questions Left Open by Taggart v. Lorenzen
If a lower court buys an argument that’s clearly wrong, is the argument nonetheless ‘objectively reasonable?’ And does Taggart apply to an automatic stay violation?
Court:
Seventh Circuit Solidifies a Circuit Split on the Automatic Stay
Disagreeing with the Tenth and D.C. Circuits and siding with four other circuits, the Seventh Circuit rules that passively holding estate property violates the automatic stay.
Court:
San Francisco Judge Slaps Down FERC on Rejection of Power Purchase Agreements
Judge Montali accuses FERC of a power grab to take the bankruptcy court’s right to rule on the rejection of executory contracts.
Automatic Stay Violations and Sanctions Litigation
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Supreme Court Rejects Strict Liability for Discharge Violations
‘No objectively reasonable basis’ is the high court standard to find civil contempt for violating the discharge injunction.
Court:
Supreme Court Agrees to Rule on What Is or Is Not a ‘Final, Appealable’ Order
For now, the high court ducks an important automatic stay question for chapter 13 debtors.
Court:
Automatic Contracts and the Automatic Stay: A Primer on “Smart Contracts” in Bankruptcy
Journal Issue:
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Circuits Split on Bankruptcy Jurisdiction for Social Security, Medicare Suits
Fifth Circuit rejects the ‘recodification canon’ to divest bankruptcy courts of jurisdiction over Social Security suits.
Court:
Freezing a Chapter 7 Debtor’s Bank Account Doesn’t Violate the Automatic Stay
SDNY opinion seems to mean that a bank may freeze a debtor’s entire bank account at filing, without violating the automatic stay.