The 10th Circuit Bankruptcy Appellate Panel recently addressed the question of whether a bankruptcy court may allow litigation against a debtor to continue in state court notwithstanding the filing of the bankruptcy case.
In Buke, LLC v. Eastburg BAP NM-10-060, attached below, the Court found that it was within the bankruptcy court’s discretion to allow a state court lawsuit to proceed, notwithstanding the filing of the bankruptcy case and the filing of an adversary proceeding within the case.
[gview file=http://www.bap10.uscourts.gov/opinions/10/10-60.pdf]