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Reminder to Practitioners Regarding Judge Gorman’s Procedures for Motions to Extend or Impose Stay

Wednesday, November 15, 2017

In June 2015, Judge Gorman’s Procedures for Cases Filed in the Springfield Division and Chapter 7 and Chapter 11 Cases Filed in the Urbana Division were updated to include procedures that are to be followed when filing motions to extend or impose the automatic stay. Those procedures make clear that every motion to extend or impose the stay must contain a detailed statement of facts demonstrating that the current case was filed in good faith and that particular attention should be paid to the factors that give rise to the statutory presumption against good faith. The procedures also unambiguously state in bold lettering that debtors must attend the hearing on a motion to extend or impose the stay.

Since these procedures were implemented, there have been several instances where debtors did not appear at the hearing or the motion did not adequately set forth a basis for extending or imposing the automatic stay, and, in some cases, relief was denied as a result. Practitioners are urged to review Judge Gorman’s procedures for motions to extend or impose the stay and take the time to ensure that their motions fully comply with the requirements set forth therein. Practitioners are further admonished that failure to fully comply with the Code and this Court’s procedures for motions to impose or extend the stay may result in denial of the requested relief with prejudice. Judge Gorman’s procedures for motions to extend or impose the automatic stay are available on the Court’s website.