Local Bankruptcy Rules: Kentucky (W.D. Ky.)
Thomson Reuters Practical Law, May 2022
A Practice Note summarizing selected local rules of the US Bankruptcy Court for the Western District of Kentucky (W.D. Ky.).
An automatic stay:
- Is triggered immediately on filing of the bankrutcy petition.
- Automatically stops substantially all acts and proceedings against the debtor and its property.
- Is a nationwide injunction barring almost all actions against the debtor and its property, including the exercise of remedies regarding collateral, enforcement of prepetition judgments, litigation, collection efforts, and acts to create, perfect, and enforce liens granted before the petition date.
- Generally applies only to prepetition events and does not, for instance, bar suit against a debtor based on a cause of action arising postpetition. The stay’s broad
scope applies to all creditors, whether secured or unsecured, and to all of the debtor’s property, wherever located.
- Forbids creditors from pursuing both formal and informal actions and remedies against the debtor and its property. It also covers remedies that could be exercised outside the US.
Click here to read this article in its entirety.