Credit Alliance Corp. v. Williams
United States Court of Appeals for the Fourth Circuit
851 F.2d 119 (1988)
Relevant factsFree
Credit Alliance (plaintiff) obtained a default judgment against a debtor company and its guarantors, including Gary Williams (defendant), after the debtor defaulted on a secured note; the debtor filed for Chapter 11 bankruptcy around the same time the judgment was entered, and the bankruptcy court held the automatic stay voided the judgment as to both the debtor and the guarantors, but the district court reversed as to the guarantors. Gary Williams appealed.
IssueFree
Whether the automatic stay set forth at 11 U.S.C. § 362 protects a guarantor, by virtue of his guarantor status, against enforcement of a default judgment entered against the debtor on the guaranteed obligation.