10-Day Stay of Bankruptcy Court Orders
The Federal Rules of Bankruptcy Procedure contain several provisions which automatically stay the effectiveness of Bankruptcy Court orders. Unless a Bankruptcy Court order specifically shortens the stay period, it cannot be relied upon until after the expiration of the stay. Actions taken in reliance on the order before the expiration of the stay will be subject to attack by creditors or the debtor as void.
1. Relief from the automatic stay.
Bankruptcy Rule §4001(a)(3):
Stay of Order. An order granting a motion for relief from an automatic stay made in accordance with Rule 4001(a)(1) is stayed until the expiration of 10 days after the entry of the order, unless the court orders otherwise.
2. Sales or leases of property under §363, including sales free and clear of liens.
Bankruptcy Rule 6004(g):
Stay of Order Authorizing Use, Sale, or Lease of Property. An order authorizing the use, sale, or lease of property other than cash collateral is stayed until the expiration of 10 days after the entry of the order, unless the court orders otherwise.
3. Sales of property pursuant to an order confirming a chapter 11 plan of reorganization.
Bankruptcy Rule 3020(e):
Stay of Confirmation Order. An order confirming a plan is stayed until the expiration of 10 days after the entry of the order, unless the court orders otherwise.
4. Assignments of unexpired leases or executory contracts.
Bankruptcy Rule 6006(d):
Stay of Order Authorizing Assignment. An order authorizing the trustee to assign an executory contract or unexpired lease under §365(f) is stayed until the expiration of 10 days after the entry of the order, unless the court orders otherwise.