An action that violates §362 is either void or voidable.  Consequently, the results of a protracted proceeding may be a nullity-or may be nullified.  This result, however, may be avoided if the bankruptcy court annuls the stay pursuant to a request for relief from the say under §362(d).  Only the bankruptcy court has jurisdiction to terminate, modify or annul the stay.  Other courts (state and federal) have the power to determine whether the stay applies to their actions, although the federal courts are split as to whether they must defer to a decision by the state court on the applicability of the stay.

Ideally, the Code or the Federal Rules of Bankruptcy Procedure should require every debtor to give prompt notice of his bankruptcy filing to every non-bankruptcy court in which he is a party to litigation.  Nevertheless, no such requirement exists.  Thus, a state court judge may or may not know if a litigant is in bankruptcy when issuing an order.

See Also:  Chapter 7 Bankruptcy