Strategies, Challenges, and Answers

What Happens When One Of Multiple Defendants Files For Bankruptcy?

A previous M&A blog post HERE discussed the ramifications of a bankruptcy filing on civil litigation by a Plaintiff or Defendant.  In that post we learned that where a sole Defendant files bankruptcy, the entire case comes to a stop due to the automatic stay imposed by bankruptcy law.  See 11 U.S.C. 362(a)(1). However, what happens when the insured defendant files bankruptcy, but is only one of several defendants?In the case of multiple Defendants, the underlying litigation is not … [Read more...]