Q: I filed an appeal of dismissal of a bankruptcy order. Is the automatic stay still in effect since appeal is pending?
The automatic stay ends when a bankruptcy case is dismissed. It does not continue during an appeal. Therefore, creditors may proceed with collections, including foreclosures and repossessions, at least until the dismissal is reversed.
Although the automatic stay is typically reimposed upon the reversal of a dismissal, most courts have held that a reimposed stay runs from the date of the reversal, not from the original dismissal date.
Sometimes refiling the case is a better option than appealing the dismissal. However, depending upon the type of case and circumstances of the dismissal, it may not be possible to refile immediately.
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