Bankr. No.:
00-50015
Chapter:
7
Date of Decision:
January 26, 2000
Issue:
Whether stay should be enforced to prevent further discovery in aid of execution by judgment creditor in state court where state court had already found Debtors in contempt for failure to comply with its orders?
Ruling:
State court could continue to hear and enter any appropriate order regarding Debtors' alleged failure to comply with the state court's orders as long as the contempt action was criminal (punitive), not civil (forcing the contemnor to act), in nature. Stay remained in place regarding any further collection or discovery matters. Creditor could utilize the ยง 341 meeting and a Rule 2004 exam in the bankruptcy case to complete the discovery it had begun in state court.
Full Bankruptcy Court Decision:
