Tag Archives: automatic stay

“But I Didn’t DO Anything – – Passive Conduct and the Automatic Stay

One of the fundamental elements of the American bankruptcy system is the automatic stay under section 362 of the bankruptcy code. The stay protects the debtor and its assets from creditor activity, in order to facilitate equitable treatment of creditors in the collective bankruptcy process. The remedies provided for violations of the stay allow the … Continue Reading

But I Didn’t DO Anything! — Can Non-action Violate the Automatic Stay?

It is commonly understood that, upon commencement of a bankruptcy case, section 362 of the Bankruptcy Code operates as an automatic statutory injunction against a wide variety of creditor actions and activities. The automatic stay enjoins (1) “commencement or continuation” of certain proceedings, (2) “enforcement” of a judgment, (3) “any act” to obtain possession of or exercise control … Continue Reading

Serial Filers: Lenders And Lessors Given A New Remedy

What can a lender do about successive bankruptcy filings by a borrower? What can lessors do when their tenants file successive bankruptcy petitions?  A recent decision by a bankruptcy court in the Eastern District of New York gives guidance on these questions. Readers of this blog know that immediately upon the filing of a bankruptcy … Continue Reading

A Push for Unanimity in the ABI Commission Report Leaves Important Issues Unaddressed

After more than two years of study on what needs fixing, the ABI Reform Commission proposed hundreds of discrete recommendations on refurbishing the Bankruptcy Code. The 396 page report addresses a wide variety of topics, from modifying the rights of secured lenders in large corporate workouts to creating a viable restructuring path for small businesses. Yet … Continue Reading