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Monday, May 08, 2006

Yet another lesson for the unwary practitioner ...

One neat trick pulled off in the bapcpa is the truncation of the automatic stay. That is, if a debtor has filed a case within the past year then the automatic stay on their current filing loses its force within 30 days unless the debtor secures a continuance under § 362(c)(3)(B) and (4)(B). Before representing such debtors however, remember that:
(1) the notice and hearing must take place within 30 days of filing
(2) debtor bears the burden of showing that the new case was filed in good faith and extention of the stay is justified
See: In re Baldassaro 338, B.T. 178 (Bkrtcy.D.N.H. 2006)
(3) debtor bears the burden of showing that if the case is a 7 discharge is likely, and if a 13 the plan will succeed
See: § 362(c)(3)(C)(i)(III)

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