Tag: Bankruptcy; automatic stay
  • Bankruptcy and the Application of the Automatic Stay to Family Law Cases

    One does not have to be a bankruptcy specialist to be aware of the automatic stay provisions that go into effect immediately upon the filing of any type of bankruptcy proceeding. 11 USC sec. 362. Because the stay is extremely broad and prohibits the continuation or commencement of most legal proceedings against the debtor or the debtor’s property and because violation of the stay can lead to harsh sanctions against creditors and attorneys alike, most lawyers and judges are inclined to immediately stop litigating a case once they become aware that a bankruptcy case has been commenced by one of the parties.

    While that generally is an appropriate response, the federal law actually excludes a number of family law proceedings from the scope of the stay.

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