Thursday, December 30, 2010

Failure to comply with a stay of bankruptcy

According to the u.s. Department of Justice provides an automatic suspension imposed, immediately after the debtor filed a petition in bankruptcy has expansive the debtor virtually all activities collection post petition of creditors relief ", unless there are the bankruptcy court for the creditor exemption for automatic suspension." If a creditor intentionally violated the automatic stay, the creditors in legal hot water can be found. Damage debtor DebtorA stay injured by violation deliberate actual damages including all costs and the cost of lawyer - and in appropriate situations, punitive damages may recover. Since the law looks to the creditors on debt can collect, automatic suspension is in effect, any creditor who break the law violates and pushes other creditors injured the debtor by interfering with the administration of the insolvency of the debtor to CreditorA of creditors case.Injury which contravenes that can not only injure suspension against the debtor, but the creditor in violation can. For example, need more of a creditor has a claim against a piece of property collects the debtors and creditors on property, it could leave the other creditors nothing.Willful ViolationThe Court take into account all the circumstances of the violation of the stay. A creditor should no specific intent to violate the stay. Even if a believer a good faith an action may not be in violation of stay, if in fact, can the Court close that the creditor has intentionally violated stay. The criterion for determining whether a creditor in violation deliberate stay was his, would determine whether creditors despite a collection action taken has to know that the debtor apetition.DamagesAfter bankruptcy stay filed had violated was, and other creditors can still use the debtor the civil litigation against the creditor. Price for actual damages requires that the applicant indicate damage or losses, stemming, acts in violation of the stay. A debtor debtor of a rented apartment is locked recovery of possession of the vehicle and examples are civil filing claim against the debtor. The creditor will also be ordered numbers the lawyer of the debtor and the associated action.Legal AlternativeIf costs that would that a creditor the collection against a debtor continues after the debtor has filed a petition in bankruptcy, the creditor should seek relief from the Court of justice. The creditor must an application for exemption from the automatic suspension. If no party the request object against, the Court granted the motion and the creditor can legally keep track of the collection efforts.

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