Debtors filed a motion to stay any actions by Creditors in the Chapter 12 Proceedings relating to an Order Granting Relief From Stay and Co-Debtor Stay and Dismissal of the Chapter 12 Proceeding. A Secured Creditor objected. The Court granted the stay pending appeal pursuant to Rule 8007. Although the Debtors did not show a substantial likelihood of success on appeal, a public interest was implicated, and that parties would be harmed if the stay were imposed, the Debtors would face irreparable injury absent a stay. In particular, the Court found that were a stay not imposed, the objecting secured creditor would likely pursue a foreclosure sale on its collateral, causing the Debtors to lose their farm and farming operations and making a Chapter 12 difficult to accomplish. However, the Court found it appropriate to impose a conditional stay to balance both the potential harms to the Debtors and the objecting Secured Creditor.
Fed. R. Bankr. P. 8007 -- Stay Pending Appeal
Suspension of Proceedings