- 7 - under 11 U.S.C. section 362(a)(8) (1988), from filing a petition with this Court at that time. On November 1, 1994, however, the bankruptcy court entered its order granting Pacific's motion for summary judgment and determined that all of petitioners' debts were nondischargeable under 11 U.S.C. section 727 (1988). On January 23, 1995, the bankruptcy court entered an order granting petitioners' motion for relief and vacating its order entered November 1, 1994. It is under these circumstances that we decide whether the petition filed with this Court on December 12, 1994, was filed in violation of the automatic stay. Petitioners argue that the bankruptcy court's order of nondischargeability, entered November 1, 1994, served to deny them a discharge, and, therefore, terminated the automatic stay. But, petitioners maintain that the bankruptcy court's order entered January 23, 1995, vacating its order of November 1, 1994, had the effect of reinstating the automatic stay as of that date. Respondent concurs with the proposition that the order of nondischargeability had the effect of terminating the automatic stay. Respondent, however, disagrees with petitioners' contention that the bankruptcy court's order entered January 23, 1995, reinstated the automatic stay. In respondent's view the automatic stay is terminated by the judgment of nondischargeability and, absent express language in the bankruptcy court's vacating order to the contrary, the stay is not reinstated. The Automatic Stay While the parties agree that the automatic stay was lifted by the order of nondischargeability, they disagree as to the effect of the order, entered approximately 3 months later, that vacated that order. There are, as we view the issue, three possible results. First, when a judgment described in 11 U.S.C. section 362(c) (1988), is vacated the stay is deemed to have been inPage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011