|
Automatic Stay
When a bankruptcy petition is filed, a stay automatically goes into effect of all actions by creditors to collect pre-petition debts or to exercise control over property of the estate. 11 U.S.C. 362(a). Any actions in violation of the automatic stay are void. In re Schwartz, 954 F.2d 569 (9th Cir. 1992). If a creditor knows that there is a bankruptcy case pending and performs an act in violation of the automatic stay, the creditor must be sanctioned even if it believed in good faith that the action would not violate the automatic stay. 11 U.S.C. 362(h). A creditor may ask that the stay be vacated or modified to permit the desired action to be performed. 11 U.S.C. 362(d). In addition, certain acts are excepted from the automatic stay, e.g. (1) the commencement or continuation of a criminal action or proceeding against the debtor, 11 U.S.C. 362(b)(1) and (2) the commencement or continuation of a proceeding to (a) establish paternity, (b) establish or modify a support award, or (c) collect support from property that is not property of the bankruptcy estate. 11 U.S.C. 362(b)(2).
Suggested Reading
Resources & Tools
BEWARE -- If a former spouse files for bankruptcy after the divorce, the creditors look to the other to satisfy those debts. Sometimes the bankruptcy of one spouse sends the other into bankruptcy as well.
|
Easily Connect With a Lawyer or Mediator
Have Divorce Professionals from Your Area Contact You!
Terms to Learn
|
Start Reaching Potential Clients Through Divorce Source. Learn More
|
Your Right to Child Custody, Visitation & Support Cover Price: $ Your Price: $17.95 You Save: $7.00 "A Plain English Guide to Protecting Your Children" Author: Mary L. Boland, Attorney at Law
|
| The information contained on this page is not to be considered legal advice. This website is not a substitute for a lawyer and a lawyer should always be consulted in regards to any legal matters. Divorce Source, Inc. is also not a referral service and does not endorse or recommend any third party individuals, companies, and/or services. Divorce Source, Inc. has made no judgment as to the qualifications, expertise or credentials of any participating professionals. Read our Terms & Conditions. |





