Pre-judgment Attachment Lien May Be Sufficient “cause” To Lift Automatic Stay

Emmet, Marvin & Martin LLP

11 U.S.C. 362(d)(1) empowers the Bankruptcy Court to grant relief from the automatic stay on the request of a party-in-interest “for cause, including lack of adequate protection of an interest in property of such party in interest.” Courts have broad discretion to lift the stay “for cause,” and typically determine whether such cause exists on a case-by-case basis using a number of factors. In the Second Circuit, Courts apply a twelve-factor test set forth in Sonnax Indus., Inc. v. Tri Component Prods. Corp. (In re Sonnax Indus., Inc.).

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