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Automatic Stay

Ninth Circuit BAP Applies Taggart to Violations of the Automatic Stay

Taggart left open the question of whether the ‘no objectively reasonable basis’ standard for discharge violations also applies to contempt of the automatic stay.
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Section 362(k)(1) Sanctions Apply to Automatic Stay Violation Continuing After Discharge

Almost $35,000 in actual and punitive damages was imposed on a judgment creditor and its collection law firm for failing to vacate a garnishment following notice of bankruptcy and discharge.

A Chapter 11 Filing Can Extend an Inflexible Closing Date by 60 Days

Filing a chapter 11 petition to obtain an automatic 60-day extension of a closing date is not a bad faith filing, Judge Bernstein says.

Supreme Court Rules that ‘Unreservedly’ Denying a Lift-Stay Motion Is Appealable

Building on Bullard, the Supreme Court rules unanimously that a lift-stay motion is a “procedural unit” that’s appealable if the bankruptcy court “conclusively” denies the motion.
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Holding a Contempt Hearing May Be Ok, but the Remedy Might Violate Automatic Stay

A contempt hearing fell under the ‘criminal’ exception to the automatic stay, but jailing a debtor to coerce payment of a prepetition debt violated the stay, Judge Grossman ruled.

Third Circuit Issues an Important Decision on Liquidation of Repo ‘Credit Enhancements’

Appeals court upholds finding that the mortgage securities market in 2007 was declining, not dysfunctional.
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Treasury Offset Program Can’t Be Used After Bankruptcy, District Judge Says

Now on the district court bench, then-Bankruptcy Judge Frank Volk was upheld in a tricky case involving the government’s right of setoff.

Supreme Court Grants ‘Cert’ to Decide Whether Inaction Violates the Automatic Stay

Virginia case highlights the damage that will be done to debtor protections if affirmative action is required for a stay violation.

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