Legal Question in Bankruptcy in Texas

We are currently the Plaintiff's in a lawsuit for fraud/DT practices, etc, and now the defendant has filed Chapter 11 bankruptcy. He is filing a motion to the courts for a stay, we are still waiting on his answer.. but he filed for a suggestion for a stay.... Is he not required to answer first since he filed for Chapter 11 long after we filed suit?

Asked on 7/06/12, 11:34 am

1 Answer from Attorneys

Mark Dunn Mark D. Dunn

If he's filed bankruptcy, he doesn't have to file an answer in your state court suit (he will probably file a "Suggestion of Bankruptcy" to notify the state court that he's filed bankruptcy). the automatic stay stops you from taking a default judgment, setting the case for trial, engaging in pre-trial discovery, etc.

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Answered on 7/08/12, 1:46 pm

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