Disciplinary Bd. of the Supreme Court of PA v. Feingold

Chapter 7 debtor appealed the district court's reversal of the bankruptcy court's order denying relief from the automatic stay to the Disciplinary Board. Debtor was disbarred from the practice of law and the Disciplinary Board later filed a complaint in state court seeking to enjoin debtor from the unlawful practice of law and to appoint a conservator to take possession of debtor's client files and take other steps to protect his clients. At issue in this appeal was whether a debt's dischargeability in bankruptcy proceedings - standing alone - constituted "cause" sufficient for a bankruptcy court to provide relief from the automatic stay provisions of 11 U.S.C. 362(a). The court affirmed in part and reversed in part, concluding that the debt was nondischargeable but, in this instance, the district court erroneously relied solely on the debt's dischargeability status in its ruling on the "cause" issue. Accordingly, the court vacated and remanded in part for further proceedings. View "Disciplinary Bd. of the Supreme Court of PA v. Feingold" on Justia Law