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Texas Atty
Texas Atty, Attorney
Category: Bankruptcy Law
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Experience:  JD
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Why was my civil suit against an individual stayed even though

Customer Question

Why was my civil suit against an individual stayed even though I was the one filing bankruptcy?
Submitted: 3 years ago.
Category: Bankruptcy Law
Expert:  Texas Atty replied 3 years ago.
In a bankruptcy all actions by you or against you are automatically stayed since the lawsuit is an asset of the estate and subject to the control of the court.



Thank you for allowing me to assist you. As you know, we work on the honor system here and cannot always provide you answers that you like. I believe I have answered all of the questions you asked so I would request that you please click the ACCEPT button so I receive credit for my work and leave feedback if you have a chance. Please consider clicking "BONUS" as a nice way of saying "thanks" for a job well done, although this is neither required nor expected. I believe in giving information that is to the point, but please remember that I can only base our answers on the information you provide and sometimes a misunderstanding as to what you are looking for or already know occurs so feel free to ask additional questions or for clarifications. Please be aware that my answer is not legal advice, it is merely information. You should always contact a local attorney for legal advice.



Several customers have asked how they direct a question to me in particular. If you specifically want me to provide information for you just put “FOR JD 1992” in the subject line and I will pick up the next time I am online.



Customer: replied 3 years ago.
I thought that bankruptcy stayed all actions against the debtor? This is an action by or for the debtor - not against. What section or ruling says the stay include actions by the debtor? It seems the bankruptcy court and creditors would want the additional income to benefit the creditors. The stay is to stabilize the situation for the debtor - not the creditor.
Expert:  Texas Atty replied 3 years ago.
It is any lawsuit by or for the debtor. The purpose is not only to protect the debtor but also to pay the creditors. Many times the court will lift the stay if requested.



Thank you for allowing me to assist you. As you know, we work on the honor system here and cannot always provide you answers that you like. I believe I have answered all of the questions you asked so I would request that you please click the ACCEPT button so I receive credit for my work and leave feedback if you have a chance. Please consider clicking "BONUS" as a nice way of saying "thanks" for a job well done, although this is neither required nor expected. I believe in giving information that is to the point, but please remember that I can only base our answers on the information you provide and sometimes a misunderstanding as to what you are looking for or already know occurs so feel free to ask additional questions or for clarifications. Please be aware that my answer is not legal advice, it is merely information. You should always contact a local attorney for legal advice.



Several customers have asked how they direct a question to me in particular. If you specifically want me to provide information for you just put “FOR JD 1992” in the subject line and I will pick up the next time I am online.



Customer: replied 3 years ago.
Can you give me a citation showing the stay stops the debtor?
Expert:  Texas Atty replied 3 years ago.
I don't have a citation, but if you look at the orders issued in your case it will say it clearly. It happens in EVERY bankruptcy, every time. Bankruptcy will even stop a divorce proceeding, although it will quickly be lifted as to everything except property.



Thank you for allowing me to assist you. As you know, we work on the honor system here and cannot always provide you answers that you like. I believe I have answered all of the questions you asked so I would request that you please click the ACCEPT button so I receive credit for my work and leave feedback if you have a chance. Please consider clicking "BONUS" as a nice way of saying "thanks" for a job well done, although this is neither required nor expected. I believe in giving information that is to the point, but please remember that I can only base our answers on the information you provide and sometimes a misunderstanding as to what you are looking for or already know occurs so feel free to ask additional questions or for clarifications. Please be aware that my answer is not legal advice, it is merely information. You should always contact a local attorney for legal advice.



Several customers have asked how they direct a question to me in particular. If you specifically want me to provide information for you just put “FOR JD 1992” in the subject line and I will pick up the next time I am online.



Expert:  Texas Atty replied 3 years ago.
Did you have any additional questions?
Customer: replied 3 years ago.

To give a thumbnail of what happened:

 

Former girl friend ended our relationship

She filed aggravated menacing charges using false allegations (later dropped).

3 days later she filed for protection order using same charges

 

I filed civil suit for willful wrong doing and personal injury based on the damage to my ability to find employment the false allegations caused. I normally can earn anywhere from $100K to $300K per year depending on how much of the year I work. I normally am responsible for projects and budgets anywhere from $50 to $750 million.

 

I filed 14 months later for bankruptcy due to lack of income. No one wants someone with that much responsibility with criminal charges and a bankruptcy.

 

She files a countersuit (after my bankruptcy was filed)

 

Bankruptcy attorney sends her notice of stay.

 

Her atty then notifies the court of bankruptcy

 

Court uses a standard form letter to notify that the civil case has been placed in an inactive file. Standard form assumed civil defendant filed bankruptcy and stated so.

 

I filed a motion to reactivate the civil case based on 11 USC 362(b)(2)(v) "regarding domestic violence". The allegations of aggravated menacing clearly fall into the definition of domestic violence.

 

Waiting to hear about the latest motion.

Expert:  Texas Atty replied 3 years ago.
That is a little different than most cases, but you are still going to have to apply to the bankruptcy court for the lift of stay. These are normally granted as a matter of course, but the stay filed by the bankruptcy court is automatic and all encompassing. Even divorce proceedings are supposed to be stayed until the lift of stay is granted.



Thank you for allowing me to assist you. As you know, we work on the honor system here and cannot always provide you answers that you like. I believe I have answered all of the questions you asked so I would request that you please click the ACCEPT button so I receive credit for my work and leave feedback if you have a chance. Please consider clicking "BONUS" as a nice way of saying "thanks" for a job well done, although this is neither required nor expected. I believe in giving information that is to the point, but please remember that I can only base our answers on the information you provide and sometimes a misunderstanding as to what you are looking for or already know occurs so feel free to ask additional questions or for clarifications. Please be aware that my answer is not legal advice, it is merely information. You should always contact a local attorney for legal advice.



Several customers have asked how they direct a question to me in particular. If you specifically want me to provide information for you just put “FOR JD 1992” in the subject line and I will pick up the next time I am online.



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