In Re R&J Pizza Corp.
Oct 14, 2014OUTCOME: The Court denied the Debtor's motion and granted the MCA Company's motion to prohibit the use of the portion of the Debtor's receivables purchased pre-petition
A Debtor in Bankruptcy sought to sanction a Merchant Cash Advance Company (MCA) for continuing to collect a portion of the Debtor's receivables post-petition alleging such action violated the automatic ... stay. The MCA Company opposed the Debtor's motion and made its own motion seeking to prohibit the Debtor from using the portion of the Debtor's receivables the MCA Company purchased pre-petition.
