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Civil Bankruptcy - Forms

  Bankruptcy Stay (MAG 11-07)
    Purpose of form: A state level court is required to enter a "stay in bankruptcy" order anytime the court receives reasonable information to indicate that a party to a civil lawsuit has filed for protection under the Bankruptcy Code of the United States. And, while state level courts may impose certain prerequisites for filing for a bankruptcy stay the federal courts may have differing requisites which tend to be more liberal.

The particular form provides that the magistrate may make any of 5 differing rulings regarding a request for a bankruptcy stay order.

Parties to a civil case should follow U.R.M.C. Rule 42: Bankruptcy stay. A party or attorney may file a signed notice of bankruptcy proceedings containing the bankruptcy case number; where the debtor in the bankruptcy case is the same as a party in the magistrate court, such a notice will stay proceedings in the magistrate court until further order of the court. Parties are encouraged to attach a copy of the first page of their bankruptcy filing to the notice. On the court's own motion, a judge or clerk may attempt to verify the filing with the U.S. Bankruptcy Court (which may be by telephone inquiry) and notify the parties to proceed with the case upon lack of verification.

Parties desiring to challenge the authenticity, scope, or continued duration of a bankruptcy stay shall file a written motion or request which shall be set for hearing before a magistrate. This motion need not be in a particular format but must set forth the "style of the case," which is heading on top of many court setting forth the name of the court, state, names of the parties and case number. All motions should set forth the relief requested. All motions should be served upon the opposing party.

  Order Lifting Stay (MAG 11-09) [DOC]
    Purpose of form: This order is signed by the magistrate if he/she finds that the stay of bankruptcy should be lifted as to one or several of the defendants.

Typical reasons for lifting the stay of bankruptcy include,

  1. The Bankruptcy Court has dismissed the bankruptcy.
  2. The Bankruptcy Court has entered its own order lifting the stay of bankruptcy affecting this case
  3. A bankruptcy action was never actually filed affecting certain defendant(s) in the state court level action.
U.R.M.C. Rule 42: Bankruptcy Stay.... Parties desiring to challenge the authenticity, scope, or continued duration of a bankruptcy stay shall file a written motion or request which shall be set for hearing before a magistrate. This motion need not be in a particular format but must set forth the "style of the case," which is heading on top of many court setting forth the name of the court, state, names of the parties and case number. All motions should set forth the relief requested. All motions should be served upon the opposing party.

  Bankruptcy Reopen Order (MAG 11-08)
    Purpose of form: This order sets the date and time for a hearing on the issue of whether a bankruptcy stay, entered pursuant to U.M.C.R. 42, should be vacated, set aside, or continued.

U.R.M.C. Rule 42: Bankruptcy Stay.... Parties desiring to challenge the authenticity, scope, or continued duration of a bankruptcy stay shall file a written motion or request which shall be set for hearing before a magistrate. This motion need not be in a particular format but must set forth the "style of the case," which is heading on top of many court setting forth the name of the court, state, names of the parties and case number. All motions should set forth the relief requested. All motions should be served upon the opposing party.

This order also reminds that parties that in the event the motion to reopen the case is granted, and the bankruptcy stay is lifted, the parties should be prepared immediately to proceed with the trial of this case.

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