Bankruptcy invalidating liens the telegraph dating
In the state of Georgia, a mechanic's lien is a tool for contractors, subcontractors and others in the home improvement and repair trades to force payment of a bill for work performed.Several conditions are set out in Georgia law that, if not followed properly, will result in the court invalidating the lien.Arbitration, settlement, civil suit and bankruptcy actions will serve to keep the lien in force, but the court must be notified in writing if any of these events occur.
Goldgar called the request "a rather obvious exercise in question begging." The lien payment is only illegal, he said on April 29, if he grants the committee's request. The unsecured creditors have said Caesars cannot refuse to consent to the start date without court approval, in part because its right to grant or refuse consent is property of its estate, which is under court supervision.
The automatic stay also protects creditors by averting a scramble for the debtor's assets and facilitating an orderly liquidation procedure under which all similarly situated creditors are treated equally.
Automatic Stay Exceptions and Relief from Stay Certain actions are excepted from the automatic stay.
In In re Mitchell and In re Best Payphones, the 9 Circuit bankruptcy appellate panel and a New York bankruptcy court adopted the majority position in holding that actions violating the automatic stay are void ab initio.
In re Mitchell also addresses whether the safe harbor afforded to an unknowing recipient of an unauthorized post-petition transfer constitutes an exception to the automatic stay.