Consumer Bankruptcy Journal Fall 2016 - Page 45

NCBRC CASES IN REVIEW warranted the imposition of sanctions under Bankruptcy Rule 9011(b)(2). The attorney misstated the law regarding when the continuance of a foreclosure sale violates the automatic stay, and he further misstated the definition of “cash collateral” so as to make it appear not to apply to estate property subject to a tax lien. Bankruptcy courts often need to act quickly, the Court of Appeals observed, and they should be able to assume that counsel are being truthful. Even when misleading filings fail to deceive a court, filings supported only by artifice serve to delay the proceedings and impose costs on the other parties. Here, moreover, the misleading assertions were not merely erroneous detours made in pursuit of otherwise wellgrounded filings. Rather, in each instance, the attorney marshaled