Attorney-at-Law

JUST COUNTING THE DAYS – PART DEUX

In Uncategorized on 06/15/2016 at 17:10

Unlike Lilian Chinedum Ajayi, who starred in my blogpost “Just Counting The Days,” 1/1/16, Christopher J. Ventura & Sara M. Ventura, Docket No. 28185-14S, filed 6/15/16 go down for the count in a designated hitter from STJ Daniel A (“Yuda”) Guy.

Chris & Sara file four (count ‘em, four) bankruptcy petitions, each of which gets bounced, although in one case Chris & Sara get an extension of the automatic stay.

Chris & Sara burned thirty of their ninety days after getting the SNOD before filing Bankruptcy One. So they had sixty days of their original ninety days, before the automatic stay stopped everything, and 60 days per Section 6213(f) after the end of their proceeding (discharge or bounce, whichever first occurs).

Chris & Sara filed Bankruptcy Two within thirty days after Bankruptcy One was bounced.

We know that while the automatic stay is in effect, no proceedings can take place in Tax Court.

But there is an exception for quick-kick refilers.

“Specifically, 11 U.S.C. section 362(c)(3)(A) and (B) provides in relevant part that, if the debtor had a single or joint bankruptcy case pending within the preceding one-year period, but that action was dismissed, the automatic stay under subsection (a) with respect to any action taken with respect to a debt shall terminate with respect to the debtor on the 30th day after the filing of the later case, unless the bankruptcy court grants the motion of a party in interest to extend the automatic stay. In Klein v. Commissioner, 135 T.C. 166 (2010), the Court interpreted the so-called exploding stay provisions of 11 U.S.C. section 362(c)(3) and concluded that they are applicable in deficiency proceedings brought in the Tax Court under section 6213(a).” Order, at p. 3.

So, when Chris & Sara filed Bankruptcy Two within a month after the first was bounced, they asked for, and got, an extension of the automatic stay. So everything was stayed again.

But after the Bankruptcy Two was bounced, the clock started again.

Chris & Sara didn’t petition Tax Court until seven months had passed since the second bankruptcy was bounced.

True, Chris & Sara filed bankruptcy twice after they petitioned, but that doesn’t help them. Their time to petition Tax Court ran before they filed Bankruptcy Three, and Bankruptcy Four, filed post-petition, is strictly a nonstarter.

So count those days, serial bankrupters, or you’re bounced from Tax Court too.

 

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