Bankruptcy Court Could Not Use 11 USC §105 to Extend or Impose the Automatic Stay

Bankruptcy Court Could Not Use 11 USC §105 to Extend or Impose the Automatic Stay

A Chapter 13 Debtor filed a Motion to Extend the Automatic Stay Pursuant to 11 U.S.C. § 363 and/or Impose the Automatic Stay. The Motion was filed 37 days after the Debtor filed the Petition. Creditor Mr. Cooper filed a response to the Motion.

Section 362 of the Bankruptcy Code provides for imposition of an automatic stay when a debtor files for bankruptcy protection. As set forth in subsection (c)(3), however, this stay is not unlimited in all circumstances. If a debtor had a prior chapter 7, 11, or 13 case that was pending in the one-year period prior to the date the debtor files the second petition — and the prior case was dismissed —then the automatic stay terminates on the 30th day after the debtor files the second bankruptcy petition. The court may extend the stay if notice is given and a hearing held before the 30-day stay terminates.

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