Merely ‘Technical’ Stay Violations Don’t Obviate Section 362(k) Sanctions, BAP Says
Even when the debtors are not parties to the suit, the stay is violated when a creditor pursues an action to collect a debt owing by the debtors, so says the Ninth Circuit BAP.
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Disastrous Litigation Strategy Didn’t Justify Stay Modification, Eleventh Circuit Says
Stay modification is required even if the creditor wants to intervene in state court to help the bankrupt estate.
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Status Conferences to Continue Prepetition State Court Suits Don’t Violate the Stay
The Ninth Circuit B.A.P. says that the automatic stay does not require dismissal of prepetition lawsuits against debtors.
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Barton Didn’t Stop Creditors from Garnishing a Chapter 13 Trustee After Dismissal
The debtor’s bad faith chapter 13 filings convinced Judge Hall to allow garnishment of funds held by the trustee after dismissal.
Refusing to Release an Attachment After Filing Is No Stay Violation Following Fulton
Pennsylvania’s Judge Conway hints that failure to stop proceedings after bankruptcy can be an automatic stay violation, even after Fulton.
Third Circuit Makes More Rules on the Proper Scope of Asbestos Channeling Injunctions
The Third Circuit made more rules to decide whether an insurance company can be insulated from failure-to-warn claims by the channeling injunction in a chapter 11 ‘asbestos’ plan.
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Good Faith Is No Defense to an Allegedly Willful Stay Violation, Third Circuit Says
Lack of authority on point is no defense to a willful violation of the automatic stay, according to the Third Circuit.
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