New York Bankruptcy Lawyer Help - What happens if creditors try to collect while bankruptcy is pending?

If creditors or their bankruptcy lawyers attempt collection of debts while an automatic stay is in effect, sanctions may be ordered by the court. Creditors and their bankruptcy lawyers are however allowed to collect specific debts and take limited actions which are specifically authorized by 11 U.S.C. 362 which sets forth exceptions to the automatic stay. If a creditor or their bankruptcy lawyers desire to proceed with collection efforts, a motion must be filed requesting permission to proceed. Creditors and bankruptcy lawyers who fail to obtain court permission are subject to sanctions. If an attempt is made after a case is closed, the procedure is similar. The debtor or their bankruptcy lawyer may ask the court to reopen the case and impose sanctions. Available sanctions include a finding of contempt of court, specific injunctive relief, and the imposition of fines and incarceration. The most common sanction is the imposition of a civil fine.

New York Bankruptcy Lawyer - Employer Liability

The US Code also prohibits employers to discriminate against any employee because of filing bankruptcy. To become actionable, the employee's bankruptcy proceeding must be the sole basis for discrimination. In practice, employers and their bankruptcy lawyers are well versed on discrimination law, and well advised by their attorneys concerning "plausible deniability." Any other basis, such as those commonly documented by memorandum warning of poor job performance, often relieve employers from liability. For employees, the bankruptcy discrimination statute is grossly ineffective.

The majority of personal bankruptcy lawyers certified in consumer Chapter 7 and Chapter 13 cases offer free initial consultations. Potential clients may review all options available and ask any question deemed important. All attorneys are bound by the attorney client privilege and must zealously guard confidentiality. Because of recent amendments to new bankruptcy laws, by passage of the latest reform bill known as the Abuse Prevention Act of 2005, debtors will find qualification for debt relief somewhat more difficult. Yet these laws also present new options, alternatives, and means of discharging debt that were previously unavailable. Now, more than ever, the assistance of qualified representation before federal courts is essential to gain maximum benefits provided by law.

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