Applicability Of Automatic Stay — Who Decides?

Law360, New York (March 4, 2010, 6:37 PM EST) -- Whenever a defendant in multiparty litigation before a state court files for bankruptcy protection, questions over jurisdiction will inevitably arise. This is particularly the case when determining whether the bankruptcy court or the state court has authority regarding the automatic stay provided to the debtor under section 362 of the United States Bankruptcy Code.

Does the bankruptcy court have jurisdiction to review the decision of the state court as to whether the automatic stay bars prosecution of the state court action? And, do the nondebtor defendants...
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