Mattarollo et al v. Branch Banking and Trust Co et al

Filing 35

ORDER STAYING CASE for a period of thirty (30) days pending the filing of a status report by the Bankruptcy Trustee. Signed by District Judge Martin Reidinger on 12/3/13. (nll)

THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
BRYSON CITY DIVISION
CIVIL CASE NO. 2:12-cv-00063-MR-DLH

CHRIS MATTAROLLO and TINA
MATTAROLLO,

)
)
)
Plaintiffs,
)
)
vs.
)
)
BRANCH BANKING AND TRUST
)
CO. and PAM MURAS,
)
)
Defendants.
)
_______________________________ )

ORDER

THIS MATTER is before the Court on the Plaintiffs’ Notice of
Bankruptcy Stay [Doc. 34].
The Plaintiffs have filed a notice with the Court indicating that they
have filed a voluntary petition under Chapter 7 of the United States
Bankruptcy Code. [Doc. 34]. The automatic stay provisions of 11 U.S.C. §
362 prevent the Bank from proceeding on its counterclaim against the
Plaintiffs.

It is well-settled that “[w]hen litigation is pending against the

debtor at the time a bankruptcy case is commenced, the litigation is stayed
automatically.” 3 Collier on Bankruptcy ¶ 362.03[3] (16th ed. 2012); see

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also 11 U.S.C. § 362(a)(1) (providing that a bankruptcy petition operates as
an automatic stay of “the commencement or continuation . . . of a judicial,
administrative, or other action or proceeding against the debtor”). While
the Plaintiffs’ claims are not subject to the automatic stay, see In re Atlas IT
Export, LLC, 491 B.R. 192, 195 (1st Cir. BAP 2013), the Court will
nevertheless stay these claims pending a determination by the Trustee in
Bankruptcy as to whether to pursue this litigation.
IT IS, THEREFORE, ORDERED that this action is hereby STAYED
for a period of thirty (30) days pending the filing of a status report by the
Bankruptcy Trustee as to his or her determination regarding the
prosecution of the claims asserted in this action.

The Trustee’s status

report shall be filed within thirty (30) days of the entry of this Order.
IT IS FURTHER ORDERED that counsel for the Plaintiffs shall
provide a copy of this Order to the Bankruptcy Trustee.
IT IS SO ORDERED.

Signed: December 3, 2013

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