Michigan Bankruptcy Lawyers - What happens if creditors try to collect while bankruptcy is pending?:
If creditors or their bankruptcy lawyers attempt collection any debt while a case is pending, court sanctions may be ordered by the court. Creditors and their bankruptcy lawyers are allowed to collect only specific debts and take specific actions which are authorized by the court. 11 U.S.C. 362 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 seeking permission. Creditors and bankruptcy lawyers who fail to obtain court permission are subject to sanctions. If an attempt is made to collect a discharged debt 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.
Michigan Bankruptcy Lawyers - Employer Liability:
The code also specifically prohibits employers and their bankruptcy lawyers to discriminate against employees because of bankruptcy. To become actionable, the employee's bankruptcy proceeding must be the sole basis for discrimination. In practice, employers 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.
Bankruptcy lawyers must carefully review each debtor's financial affairs before suggesting any particular remedy. Because each client is unique, all alternatives may not be available. Also, bankruptcy lawyers often offer different opinions regarding available alternatives in the same circumstance, based on each bankruptcy lawyer's personal level of legal expertise. All potential debtors should consider the opinions of at least two, and preferably three consumer bankruptcy lawyers to discover all available alternatives.
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