Thursday, December 18, 2008

In re Spencer, (Bkrtcy.D.Dist.Col.)

June 4, 2008: Case Administration - Court interprets "automatic dismissal" language in payment advice provision. The "automatic dismissal" language in a provision of the Bankruptcy Code indicating that a case shall be automatically dismissed if the debtor fails to file payment advices or other required information within 45 days of the petition date, even when read in isolation from provisions in companion paragraphs, had to be interpreted simply as directive that court had no discretion other than to dismiss a case in which required payment advices are not filed, and not as effecting the automatic dismissal of such cases, with no need for court intervention, on the 46th day after the petition date. Dismissal would be effective on the date the dismissal order was entered.

Rachel Lynn Foley, Kansas City Missouri Bankruptcy Attorney.

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