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2021 Stroock Bankruptcy Guide

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64 stock that does not meet applicable regulatory requirements; (xx) a taxing authority's setoff of a prepetition refund against a prepetition tax liability, provided that if the taxing authority is not permitted to setoff under applicable nonbankruptcy law due to a pending action to determine the amount or legality of the tax liability, the authority may hold the refund pending resolution of the action unless the court grants the authority adequate protection; and (xxi) the Secretary of Health and Human Services' exclusion of the debtor from participating in the Medicare program or any other Federal healthcare program. In the Chapter 11 context, Sections 1110 and 1168 of the Bankruptcy Code also place limitations on the scope of the automatic stay. In short, Sections 1110 and 1168 permit parties with a security interest in, or lessors or conditional vendors of, certain aircraft and related parts, ships, or railroad rolling stock to repossess the property despite the protection of the automatic stay unless the trustee agrees to perform the underlying contract or cure any defaults within sixty days of the commencement of the bankruptcy case. However, during the sixty days following the commencement of the bankruptcy, repossession is stayed. For a more complete discussion of this topic, see Chapter V.G.3. 3. Relief from the Automatic Stay As noted above, in some instances, the court may grant a party in interest relief from the automatic stay. If a party in interest requests relief from the automatic stay, a court may grant such relief by conditioning, annulling, modifying, or completely terminating the automatic stay. 11 U.S.C. § 362(d). According to 11 U.S.C. § 362(d)(1), the court shall grant relief from the automatic stay "for cause," which includes the failure to

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