The 30-Day Stay Under 362(c)(3)
Section 362(c)(3) provides that if a debtor had one prior bankruptcy case pending and dismissed within the 1-year period before the current filing, the automatic stay in the new case terminates after 30 days unless the court extends it.
This is one of the most significant consequences of serial filing. The automatic stay -- the powerful injunction that stops all creditor collection, foreclosure, garnishment, and lawsuits -- is designed to give debtors breathing room. But Congress limited this protection for repeat filers who it presumed were filing for delay rather than legitimate relief.
How to Extend the Stay
To extend the stay beyond 30 days, you must file a motion and prove by clear and convincing evidence that the new case was filed in good faith. The motion must be filed within the 30-day window -- if the stay expires, you must file a motion to reimpose it instead.
The court considers the "totality of circumstances" to determine good faith. Favorable factors include:
- Changed circumstances since the prior case (new job loss, medical emergency, divorce)
- The prior case was not dismissed for failure to comply with court orders
- The debtor is now able to complete a plan or qualify for Chapter 7
- Creditors would not be prejudiced by the extension
Presumption of bad faith: Section 362(c)(3)(C) creates a presumption that the new filing is not in good faith if the prior case was dismissed after the debtor failed to file required documents, failed to perform the terms of a plan, or there has been no substantial change in the debtor's financial affairs.
Circuit Split: Does the Stay Terminate in Full or Only as to the Debtor?
There is a significant circuit split on whether Section 362(c)(3) terminates the stay entirely (against the debtor, the estate, and all property) or only as to the debtor and the debtor's property. Some courts hold that the stay continues to protect estate property even after the 30-day expiration. Check your circuit's interpretation before relying on this distinction.
Comparison: One Prior Case vs. Two or More
| Situation | Stay Duration | Statute |
|---|---|---|
| No prior cases in past year | Full stay | 362(a) |
| 1 prior case pending in past year | 30 days (extendable) | 362(c)(3) |
| 2+ prior cases pending in past year | NO stay at all | 362(c)(4) |
For the complete analysis of when no stay applies, see No Stay at All.
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Related Resources
automaticstay.org -- Complete automatic stay guide
No Stay at All -- When 2+ prior cases mean no stay under 362(c)(4)
109g.org -- The 180-day filing bar under Section 109(g)
dischargebar.org -- All discharge bar timing rules