Bankruptcy - Automatic Stay - Bradberry v. Carrier Corp.

In Bradberry v. Carrier Corp., [Ms. 1100994, Dec. 16, 2011] __ So. 3d __(Ala. 2011), the Alabama Supreme Court held that if one co-defendant files for Chapter 11 bankruptcy, the automatic-stay provision of ¤ 362 of the Bankruptcy Code does not act to stay proceedings against a debtor's solvent co-defendants. Moreover, the Court held that the case against the solvent co-defendants could proceed without the trial court first entering a formal order severing and staying the action as to the insolvent co-defendant or dismissing it from the case.
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