Automatic stay gone because of dismissed case
Posted: Wed Apr 11, 2018 2:37 pm
Hello brain trust:I have a case that I needed to refile because the debtors didn't sign two of the pages they needed to. Rather than move to set aside the dismissal, I just refiled the case. That brought in the disappearing stay provisions of 362(c)(3): the stay existed for 30 days, then disappeared. I didn't think I really needed the stay, because there had been no levies or other action prior to the bankruptcy filing.On the 26th day, the California Department of Fees and Tax Administration levied, because it believed that the case had been dismissed. The bureaucrats didn't realize that the debtors had refiled. Oops, they said, we'll return the levied funds, our bad.I now have a case where the stay does not exist. CDFTA has the right to levy again. But will it? If it levies and gets funds, then it will just need to return those funds after the discharge, correct?
The post was migrated from Yahoo.