Zone of Insolvency

Zone of Insolvency

Tag Archives: automatic stay

A Refresher on Constitutional Mootness and Its Application to Lift-Stay Motion Appeals

Posted in US
Constitutional mootness is a threshold question for determining whether a court has jurisdiction over an appeal. It arises from the “case or controversy” requirement under Article III of the U.S. Constitution – if no “case or controversy” exists for which the court may grant effective relief, the court lacks jurisdiction and must dismiss the appeal… Continue Reading

When is Cause, “Cause” Enough?

Posted in US
When companies file for bankruptcy, they receive the immediate protection of an “automatic stay,” which halts all creditors’ collection activity and lawsuits seeking to recover funds from the debtor. This automatic stay provides debtors with a much needed “breathing spell” to get themselves organized and on the way, if possible, to reorganization. However, creditors are… Continue Reading