Section 5.70 Effect of Acts in Violation of the Stay

LibraryBankruptcy Practice (2007 Ed. + 2015 Cum Supp)

A. (§5.70) Effect of Acts in Violation of the Stay

There is a split among the courts as to whether an action taken in violation of the stay is void ab initio or is merely voidable. See In re Lett, 238 B.R. 167, 193–96 (Bankr. W.D. Mo. 1999) (Venters, B.J.) (actions taken in violation of the automatic stay are voidable, and not void ab initio); In re Jackson, 260 B.R. 473 (Bankr. E.D. Mo. 2001) (Barta, B.J.) (acts committed in violation of the automatic stay are void). Although the Eighth Circuit Court of Appeals expressly declined to rule on this issue in Riley v. United States, 118 F.3d 1220, 1222 n.1 (8th Cir. 1997), the Bankruptcy Appellate...

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