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Discussion
Title 11 of the United States Code provides uniform
procedures designed to promote the effective rehabilitation of
the bankrupt debtor and the equitable distribution of his assets
among his creditors. See H. Rept. 95-595, at 340 (1977). One of
the key elements to achieving these aims is the automatic stay
that generally operates to temporarily bar actions against or
concerning the debtor or property of the debtor or the bankruptcy
estate. See Halpern v. Commissioner, 96 T.C. 895, 897-898
(1991). When operative, the automatic stay serves to preclude
the commencement or continuation of proceedings in this Court.
Relevant here, 11 U.S.C. section 362(a)(8) (1988), provides in
pertinent part:
(a) Except as provided in subsection (b) of this
section, a petition filed under section 301, 302, or
303 of this title, * * * operates as a stay, applicable
to all entities, of --
* * * * * * *
(8) the commencement or continuation of a
proceeding before the United States Tax Court
concerning the debtor.
In short, the filing of a bankruptcy petition invokes the
automatic stay which normally precludes the commencement or
continuation of proceedings in this Court. Allison v.
Commissioner, 97 T.C. 544, 545 (1991).
The period that the automatic stay remains in effect is
prescribed in 11 U.S.C. section 362(c) (1988), as follows:
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Last modified: May 25, 2011