Automatic Stay Provision of the Bankruptcy Code

| Sep 1, 2010 | Bankruptcy |

The In re Williams court ruled, at a hearing on the debtor’s motion to extend the automatic stay, that the relief requested could be granted, if the debtor filed either a wage order or notice of commencement of an automated clearinghouse (ACH) draft of his bank account.  The debtor failed to file either a wage order or an ACH notice, and the court denied the motion. 

On the debtor’s Motion for Reconsideration, the court held that it could not reconsider the denial of the motion because it was more that 30 days after the date of the filing of the petition and it would effect an enlargement of a substantive right.
The bankruptcy court determined that, to the extent the debtor’s motion sought “other and further” relief, the court could consider whether to impose a stay under Section 362(c)(4).  However, the court declined to do so in light of the debtor’s continued failure to file a wage order, or an ACH or EFT authorization.