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Court Services Division Manual / Volume 6 - Civil Management Bureau (CMB) / Manual of Civil Procedure / 6-29/000.00 Bankruptcy / 6-29/100.00 Bankruptcy / 6-29/108.00 Automatic Stay / 6-29/108.40 Repeat Filings

6-29/108.42 Two or More Prior Dismissed Cases


6-29/108.41 Prior Case Filed Within One Year
6-29/108.50 Notice of Bankruptcy

There is no automatic stay if a debtor files a case after two or more cases were dismissed in the previous year. However, the court may order, after notice and a hearing, that the stay take effect upon a showing that the new case is filed in good faith. (11 USC 362(c)(4))

There is a presumption that the new case is filed in bad faith if:

  • the debtor filed more than one prior case in the preceding year, or
  • a prior case was dismissed for failure to file documents without substantial excuse, failure to provide adequate protection, or failure to perform the terms of a confirmed plan, or
  • there has been no substantial change of circumstances since the last dismissal that would make the new case likely to be successfully concluded, or
  • a prior case was dismissed after a creditor had filed a motion for relief from the automatic stay.