Rule 8.20 EFFECT OF BANKRUPTCY PETITION

(1) When a matter is pending in the appellate courts and a party learns that the matter is subject to the stay provisions of 11 USC § 362(a)(1)1 (relating to bankruptcy proceedings), the party shall give notice of that fact to the appellate court, together with proof of service of the notice on all other parties to the case. The court will enter an order holding the matter in abeyance until it is shown to the court’s satisfaction that the stay has been lifted or that 11 USC § 362(a)(1) is not applicable to the case.

(2) If a petition in bankruptcy is filed after entry of a judgment or final order but before a notice of appeal or petition for judicial review is filed and the adverse party desires to appeal, the notice or petition must nonetheless be filed within the time provided by statute or rule.

(3) If an appellant believes that a pending bankruptcy proceeding involving a party to the judgment being appealed should stay the appeal pending disposition of the bankruptcy proceeding, the notice of appeal or petition for judicial review shall contain, in addition to all other requirements under a statute or these rules, a statement identifying the party that has filed a petition in bankruptcy and a request to hold the appeal in abeyance on account of the bankruptcy proceeding.

(4) (a) Whether the petition in bankruptcy is filed after judgment or final order but before a notice of appeal or petition for judicial review is filed, or after a notice or petition is filed, the appellate court will not exercise jurisdiction as to the debtor party as long as the stay under 11 USC § 362 remains in effect.

(b) If more than one creditor and debtor are parties to the case on appeal and the presence of the debtor subject to the bankruptcy petition is necessary to resolve on appeal the claims of the other parties, then the appellate court will not exercise jurisdiction of the entire cause as long as the stay under 11 USC § 362 remains in effect.

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1 The filing of a petition in bankruptcy under 11 USC §§ 301, 302, or 303 operates as a stay as to all entities, of:

“the commencement or continuation, including the issuance or employment of process, of a judicial, administrative, or other proceeding against the debtor that was or could have been commenced before the commencement of the case under this title, or to recover a claim against the debtor that arose before the commencement of the case under this title * * *.”

11 USC § 362(a)(1).


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