Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
If you are the appellant/defendant, then most courts agree that the bankruptcy stay extends to an appeal taken by the debtor defendant, because the stay bars “continuation” (as well as commencement) of an action against the debtor. Bankr. Code § 362(a)(1) (emphasis added); see Parker v. Bain (9th Cir. 1995) 68 F3d 1131, 1135-1136; Farley v. Henson (8th Cir. 1993) 2 F3d 273, 275; Ostano Commerzanstalt v. Telewide Systems, Inc. (2nd Cir. 1986) 790 F2d 206, 207.
In short, the appeal is stopped.
Hope this helps.
after the stay is released how does the court handle the appeal. does the timeframes start over or do the timesframes pick up with the number of days left when the appeal notice was filed.
Everything is "tolled," suspended, and starts right where it left off. In Chapter 11, the automatic stay is lifted when estate property is returned to the debtor -- which is usually when the bankruptcy plan is confirmed by the court. Bankr. Code 362(c)(1). Hope this helps.