Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

The Bankruptcy StrategistFeaturesBankruptcyCivil ProcedureLitigation

Bankruptcy Court Says Bankruptcy Case Is 'Filed' When Uploaded, Not Stamped

By Lawrence J. Kotler and Drew S. McGehrin
September 01, 2023

"Mere minutes can be the difference between saving one's home … or losing that home to a foreclosure." With this statement, the U.S. Bankruptcy Court for the Southern District of New York (the Bankruptcy Court) summed up the importance of the determination as to when a bankruptcy case is actually filed of record, thereby triggering the imposition of the automatic stay. In In re Francisco Procel, Case No. 23-10697-CGM (Bankr. S.D.N.Y., July 25, 2023), Docket No. 47, the Bankruptcy Court thoroughly examined this issue and found that the "upload" time of a bankruptcy filing — and not the time physically "stamped" on a bankruptcy petition — determines when a case is commenced. In doing so, the Bankruptcy Court offered direction and guidelines that debtors and creditors will be well advised to observe in future cases.

Facts and Procedural History

In this case, the debtor filed for relief under Chapter 13 of the Bankruptcy Code on May 2 — the same day that a foreclosure sale was scheduled to be held on an investment property the debtor owned. The foreclosure sale was scheduled to commence at 2 p.m., proceeded as planned, and concluded by 2:05 p.m. The debtor's bankruptcy petition, however, bore a "time stamp" of May 2 at 2:25 p.m. — 20 minutes after the foreclosure sale concluded.

On May 26, the loan servicer that conducted the foreclosure sale on the property filed a motion in the debtor's bankruptcy case seeking a declaration that the automatic stay was not in effect when the foreclosure sale occurred. The debtor filed an opposition to the motion and argued that he electronically filed his bankruptcy petition online using the court's electronic pro se bankruptcy petition prior to when the foreclosure sale occurred. Included in the debtor's opposition was a screenshot from his phone that allegedly showed that his bankruptcy petition was uploaded at 1:12 p.m. — 48 minutes prior to the foreclosure sale.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Removing Restrictive Covenants In New York Image

In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?

The Cost of Making Partner Image

Making partner isn't cheap, and the cost is more than just the years of hard work and stress that associates put in as they reach for the brass ring.