First Circuit Rules That Termination Of The Automatic Stay Does Not Affect Property Of The Estate
January 10, 2007
In In re Jumpp, No. MW 06-031 (1st Cir. December 28, 2006), the Bankruptcy Appellate Panel for the First Circuit ruled that Section 362(c)(3)(A) only terminates the automatic stay as to the debtor, not the property of the estate. This provision is in regards to a bankruptcy filing within one year of a dismissal of an earlier case, and requires the termination of the stay after 30 days unless a motion if filed and granted within such 30 day period.
The court held that the statute’s language that the “stay . . . shall terminate with respect to the debtor” only regards the debtor, and not the assets of the estate. This decision effectively makes the the penalty of Section 362(c)(3)(A), which calls for the stay to terminate 30 days after the filing of a bankruptcy case commenced within a year of the filing of a previously-dismissed case, useless as a second Chapter 13 filing would still permit a debtor to protect a house from foreclosure - this, speculatively and presumably, was the very event Congress want to prevent.
Congratulations to attorneys Craig T. Ornell and Lawson Williams of Worcester, MA for working so hard on their client’s behalf in this important issue.
Please Click Here to Read the Case.
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