FIRST FEDERAL S & L ASS'N OF LITTLE ROCK v. Pettit

MEMORANDUM AND ORDER

HENRY WOODS, District Judge.

This case is before us on an appeal from the bankruptcy court’s decision enjoining First Federal Savings & Loan Association from bringing suit against the bankrupt’s co-debtor. Arch and Ida Pettit filed a bankruptcy proceeding under Chapter 11 of the new bankruptcy and submitted a reorganization plan involving a residence occupied by Mr. Pettit’s mother-in-law, Mrs. Volpe. The mortgage and promissory note on the residence were issued by First Federal and show both the Pettits and the Volpes as borrowers. According to the reorganization plan,…