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Is filing a claim against a contractor's bond a stay violation?
I have a Ch 13 debtor who is in the plastering business. An unpaid supplier has filed a proof of claim. They have also filed a claim with Debtor's bond company.
The bond company has stated they are cancelling the bond in 30 days because their contract allows a cancellation when a claim is filed. If Debtor loses his bond he can't work.
I would think that the supplier filing the claim is a violation of the stay - if not then bankruptcy is wortless for anyone who has to have a bond to make a living but I was wondering if anyone knows of a rule or case on this topic.
Thank you.
The post was migrated from Yahoo.