Cline v. Davis
Federal bankruptcy law imposes an automatic stay on civil actions by or against debtors in state court while the bankruptcy case is pending. In this case, defendants had commenced a bankruptcy action before this state court suit was commenced by the plaintiffs. Also, while the bankruptcy proceeding was pending, defendants joint default was entered in violation of the automatic stay. After defendants bankruptcy case was dismissed, the state court default ripened into a default judgment. Court conclude that the violation of the automatic stay rendered the underlying default void, and that as a result, the ensuing judgment was also void. Accordingly, Court reverse the trial courts order denying defendants motion for relief from the default, and the resulting judgment.
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