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Even when the debtors are not parties to the suit, the stay is violated when a creditor pursues an action to collect a debt owing by the debtors, so says the Ninth Circuit BAP.
Until now, there has been surprisingly little precedent directly on point to say that denial of a motion for conversion from chapter 11 to chapter 7 is not a final order subject to appeal
Disclosing a lawsuit in the SOFA and discussing the suit with the trustee was no substitute for listing the suit among a debtor’s assets, the Ninth Circuit held.
The Nevada Supreme Court correctly unpacked the confusing notions of bankruptcy jurisdiction and the division of authority between district and bankruptcy courts.