Occasionally, a case comes along that is important not because it merely illuminates a specific issue of law, but because it completely rewrites the state of the law in a particular jurisdiction or judicial circuit. When these changes in the state of binding case law happen in Chapter 11 bankruptcy law (as occurred earlier this year here in South Florida) they serve as just one more reminder of why it’s so beneficial to rely on a knowledgeable South Florida bankruptcy attorney who can offer you not just diligent advocacy but also a completely up-to-date understanding of the state of the law, and what changes in the law mean for you.
A January 2021 ruling by the Third Circuit Court of Appeal here in Miami made a very significant change in the law governing when the automatic stay created by Section 362 of the Bankruptcy Code does – and doesn’t – go into effect. Knowing when your case will (or won’t) be automatically stayed can, of course, be a massively important consideration when it comes to deciding whether or not to file for bankruptcy.
The origins of the underlying case began after a Minnesota-based lender obtained a $12 million judgment in 2015 against a medical diagnostic imaging company with its holding company based in South Florida.