Monday, August 30, 2010

Bankruptcy Action Can Be 'Commenced' Despite Failure to Meet Law's Requirements, 2nd Circuit Says

A bankruptcy action can be considered "commenced" even when a debtor has failed to meet a requirement imposed by Congress that he first receive credit counseling, the 2nd U.S. Circuit Court of Appeals has ruled. Interpreting a "statutory tangle" of bankruptcy provisions, the circuit said the counseling requirement under 11 U.S.C. §109(h) is not jurisdictional in nature and a case can still be regarded as begun by the filing of a bankruptcy petition, which triggers an automatic stay.'Commenced'%20Despite%20Failure%20to%20Meet%20Law's%20Requirements%2C%202nd%20Circuit%20Says