Credit Alliance Corporation v. Gary L. Williams, and Penn Hook Coal Company, Inc. Malcolm C. Williams, Jr.

WILKINSON, Circuit Judge:

Gary Williams, guarantor of a note executed by Penn Hook Coal Co. in favor of Credit Alliance Corp., appeals the decision of the district court that a default judgment against Williams on the note was not rendered void by virtue of Penn Hook’s petition for bankruptcy. We agree with the district court that the automatic stay provision of the Bankruptcy Code, 11 U.S. C. § 362, stays proceedings against the debtor only, and that no such relief is available to the non-bankrupt guarantor. Because principles of res judicata preclude relitigation of issues which could have…