Tech-Talk: We’ve Lost an Automatic Stay!

Technical bankruptcy procedure can be fun. So, here goes. Dueling Districts Imagine two bankruptcy cases, involving the same debtor or their affiliate in two different districts (e.g., Delaware and Wyoming). It's likely that one set of interested parties (e.g., debtors, creditors, regulators) will find one of the venues inconvenient. Often, the second case's filing responds to the first case's inconvenient location. Federal Rule of Bankruptcy Procedure 1014(b) ("Rule 1014(b)") provides a means for moving the inconvenient case to the preferred location. A motion is filed in the pending first case's district.

Click here to read Wayne Greenwald's full article...