Bankruptcy Litigation: Bankruptcy Stay & Discharge Violations                                    

Upon filing a bankruptcy a consumer is entitled to a “fresh start”.   At the beginning of a bankruptcy the court issues a “stay” which generally prohibits debt collection while the bankruptcy is pending.   At the conclusion of a successful bankruptcy the petitioner receives a bankruptcy “discharge” which prohibits collection of debts discharged by the bankruptcy.  Both the bankruptcy stay and the bankruptcy discharge are court orders and are binding upon creditors.  Creditors that violate these orders do so at their own peril.  They may be liable for actual and statutory damages and may be held in contempt of court.