Debtor Hospital filed an adversary complaint claiming that a prepetition government claim should be subject to the Automatic Stay. The Bankruptcy Court agreed citing 11 U.S.C. 362(a)(6). District Court reversed in part. The 7th Circuit Reversed again.Read More

The Automatic Stay in Bankruptcy prevents creditors from taking action against debtors so they can get a fresh start without fighting the same battles over again. This post looks at how the Stay works in practice.Read More

Receive FREE Daily Opinion Summaries by Email Justia.com Opinion Summary: Wisconsin smelting plant owed more than $1.3 million in delinquent utility charges to the local municipal utility when it filed for Chapter 11. Months later, despite the Automatic Stay, a utility company implemented a process pursuant to Wisconsin Statutes and Local Ordinances 66.0809 and 66.0627...Read More