Can a there be a motion to lift an automatic stay to pursue a lawsuit in another state?

Question Details:

I have been in Chapter 7 for 10 months. The only thing holding it up is the plaintiff in this lawsuit filed an adversary complaint; we are scheduled for a trial in bankruptcy court in about 5 months. Now they just filed to have the stay lifted to continue the lawsuit in other state and I don't understand this.

Asked 9/20/2011 under Bankruptcy | 143 View(s) | More Legal Topics

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Bankruptcy Law Answers

Mark J. Markus / Mark J. Markus, Law Offices of Answered 8 months ago | Contributor This attorney is licensed in California

not enough facts to answer. It depends on what the basis of the adversary complaint is and why they are seeking to litigate in a different court. That is common, but it really depends on what they are litigating. If they are objecting to the discharge of the debt, there may be certain findings they need the state court to make. As far as doing it in a court of another state, you may have grounds to have the case moved elsewhere, or you can oppose the Motion for Relief From Stay citing one of the grounds that it is too expensive for you to travel and defend in that forum.

However, again, I don't have enough facts to really answer. You need to consult with a bankruptcy attorney in your area who can review all the relevant documents and advise accordingly.

Mark J. Markus, Attorney at Law

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