Judge Furay Sides with the Minority on Stay Termination After a Repeat Filing

May 29, 2025

Judge Furay Sides with the Minority on Stay Termination After a Repeat Filing

Courts are divided on whether automatic stay termination in Section 362(c)(3) applies to property of the debtor’s estate.

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Opinion Link

View Opinion

https://abi-opinions.s3.us-east-1.amazonaws.com/Sloniker.pdf

Case Details

Case Citation

In re Sloniker, 25-10673 (Bankr. W.D. Wis. May 21, 2025)

Case Name

In re Sloniker

Case Type

Consumer

Court

7th Circuit

Wisconsin

Wisconsin Western District

Bankruptcy Tags

Automatic Stay

Comments

Submitted by Neil Gordon on May 29, 2025

The court concludes that the "plain meaning" of the statute is the exact opposite of what it says (and what the vast majority of courts have found). The court ignores section 362(c)(1), which explicitly refers to "the stay of an act against property of the estate...continues until such property is no longer property of the estate." Then, subsection (c)(2) actually begins by saying "the stay of any other act...." Subsection (c)(2) and (c)(3) are clearly addressing the "stay of any other act." Meaning, with respect to property that is NOT property of the estate. Congress demonstrates repeatedly throughout the Code that it understands the difference between the debtor and the estate.