In re Irwin, Bky. No. 10-14407, 2011 BL 236759 (Bankr. E.D. Pa. Sept. 15, 2011) The United States Bankruptcy Court for the Eastern District of Pennsylvania granted a receiver’s motion seeking a determination that the automatic stay of 11 U.S.C. § 362 did not apply to her filing claims against a debtor’s immediate family, as non-debtor defendants, to recover property which originated from a Ponzi scheme orchestrated by the debtor’s client. At the same time, the bankruptcy court denied the motion to the extent that it sought relief from the stay to file claims against the debtor individually and against property held jointly with his wife, holding that the automatic stay applied to these claims and the receiver had failed to establish “cause” under 11 U.S.C. § 362(d) to lift the stay.
Debtor’s Alleged Involvement in Forte’s Ponzi Scheme
Court-Appointed Receiver’s Motion for Relief from Stay
Automatic Stay Did Not Apply to the Non-Debtor Defendants
Non-Debtor Defendants’ Collateral Estoppel and Rule 19 Arguments
Receiver’s Request Relief from Stay to Proceed against Debtor’s Property
Bankruptcy Court Partially Grants Receiver’s Stay Motion
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