Update on § 362(c)(3) Comfort Orders in Minnesota

Prepared by James A. Dohnalek Jr. Esq. with Shapiro & Zielke serving Minnesota

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​11 U.S.C. § 362(c)(3)(A) of the bankruptcy code states that when a debtor had a bankruptcy case pending within the preceding year, and it was dismissed, the automatic stay "shall terminate with respect to the debtor or property securing such debt ... on the 30th day after the filing of [a second] case". There is a split among the bankruptcy courts as to whether this section of the code lifts (i) the automatic stay as to the debtor and the bankruptcy estate, or (ii) just the automatic stay as to the debtor. In the past, the position of the Minnesota bankruptcy courts had been that § 362(c)(3)(A) lifts the automatic stay as to both the debtor and the property of the estate.

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