Rule 75 - Bankruptcy - Litigation Involving Debtors Under the Bankruptcy Code
Rule 75.1 - Stays of Action Against Debtors
1. The automatic stays of certain actions against debtors are recognized in the Circuit Court pursuant to 11 U.S.C. Section 362.
2. Every debtor in a proceeding under 11 U.S.C. Section 101 et seq. having knowledge that any case or proceeding potentially subject to the automatic stays set out in 11 U.S.C. Sections 362 or 1301 (a) is pending in the Circuit Court at the time a bankruptcy petition is filed shall notify the Court Administrator's Office in writing of the filing of the bankruptcy petition. The notice shall contain the circuit court case number and style of the case.
A copy of such written notice shall also be sent to the attorney of record for the adverse party in each such case, or, if there is no such attorney of record, to the adverse party.
3. Judgment creditors are solely responsible for determining the effect of a bankruptcy on a circuit court judgment and particular enforcement activity, and for directing the Court Administrator's Office, according to the procedures set forth below, to cease enforcement activity. The Court Administrator's Office shall not stay enforcement activity upon notice of a judgment debtor's bankruptcy without written authorization from the judgment creditor.
A levy requested by a judgment creditor on property located within Jackson County will not be stayed despite notice of the judgment debtor's bankruptcy, unless one of the following occurs, at which time enforcement activity will cease:
a) Judgment creditor must give written notice to the Director of Civil Process and Director of Civil Records to halt the specific enforcement activity, or
b) Judgment debtor must provide to the Director of Civil Process and Director of Civil Records an attested order of the United States Bankruptcy Court, which specifically identifies the particular case file, judgment creditor, and execution activity in progress, and enjoins further enforcement activity. 4. For writs of execution directed to out-of-county jurisdictions, the judgment creditors and judgment debtors are responsible for directly contacting the levying officer in such jurisdiction to cease enforcement activity.
5. If directed to cease enforcement, the Court Administrator's Office shall forward any monies or property received pursuant to execution to the appropriate trustee in the bankruptcy case.
6. A judgment creditor who obtains an Order for Relief from Automatic Stay from the United States Bankruptcy Court must provide an attested copy to the Department of Civil Records, with specific reference to the circuit court case number in question, for inclusion in the circuit court casefile.
7. Every debtor in a proceeding under 11 U.S.C., Section 101 et seq. shall file with the Court a copy of any discharge entered in any such bankruptcy proceeding. Said copy shall contain the circuit court case number and style of the case.
8. One year from the date of filing of the notice of bankruptcy, circuit court petitions will automatically be dismissed without prejudice.
10/27/89
(Effective 11/26/89)