Automatic Stay: § 362: RELIEF: Non-Bankruptcy Forum

4001-1(c)-NONBK: Automatic Stay: § 362: RELIEF: Non-Bankruptcy Forum

Under Bankruptcy Code section 362(a), the "automatic stay" applies at the moment a bankruptcy petition is filed. This offers protection from creditors who must file a "Relief from Stay" motion to ask the judge to terminate the stay to take action against the debtor or debtor's property outside of the bankruptcy court.

A party who wants to start or continue a lawsuit in state court or another federal court must use the Nonbankruptcy Forum process in bankruptcy court.

This includes parties who have already started litigation in a non-bankruptcy forum process but have not completed the process or have not recovered from insurance proceeds.
This applies as long as the automatic stay is still in effect.
Court forms are mandatory -- See links below

NOTE: The bankruptcy court does not participate in the litigation in the non-bankruptcy forum. The bankruptcy court simply adjudicates a party's motion for permission to proceed with litigation in the non-bankruptcy forum.

Section:

Section 4 - Match Local Bankruptcy Rules with Forms

Section Number or LBR Number:

4001-1(c)-NONBK

Reference to Local Rules and/or Forms:

Notice of Motion and Motion for Relief from the Automatic Stay or for Order Confirming that the Automatic Stay Does Not Apply Under 11 U.S.C. § 362(l) (with supporting declarations) (Unlawful Detainer)

Response to Motion Regarding The Automatic Stay And Declaration(s) in Support

Order Granting Motion for Relief From the Automatic Stay under 11 U.S.C. § 362 (Action in Nonbankruptcy Forum)

Order Denying Motion for Relief From the Automatic Stay Under 11 U.S.C. § 362

Rule 4001-1 through 4008-1