New Mexico Court Reminds that Prosecuting Prepetition Claims in Bankruptcy May Still Violate the Automatic Stay

There is far more than a single way that a creditor of a bankrupt entity (or debtor) can right prosecute its statements in individual bankruptcy. If the creditor is involved in prepetition litigation with the debtor, it could request reduction from the automatic keep to carry on liquidating its assert versus the debtor in a non-individual bankruptcy forum, pursuant to eleven U.S.C. § 362(d)(one)….
By: Dorsey & Whitney LLP