First Circuit Court of Appeals Holds Bankruptcy Stay Protections Limited for Repeat Filers

On December 12, 2018, the First Circuit Court of Appeals (COA) ruled that a debtor who sought personal bankruptcy twice in less than a year can’t claim any of his property is protected by a stay automatically terminated after the second filing.  The COA found that § 362(c)(3)(A) terminates the entire automatic stay –- as to actions against the debtor, the debtor's property, and property of the bankruptcy estate -- after thirty days for second-time filers.  See Smith v. Me. Bureau of Revenue Servs. (In re Smith) , 1st Cir., No. 18-1573, 12/12/18 . 

Friday, December 14, 2018