Illinois 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, 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 this "automatic stay" of collection. 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 a wide range of punishment. If creditors or their bankruptcy lawyers attempt collection of a discharged debt after a case is closed, the procedure is similar. The debtor may ask the court to reopen the case and impose sanctions upon the creditor. 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.

Illinois Bankruptcy Lawyers - Employer Liability

The code also specifically prohibits employers 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.

Requirements for discharge and confirmation are complex. Bankruptcy lawyers must carefully construct a financial history for each client before recommending any course of action. Because financial histories are unique, available options under the Code vary. Also, bankruptcy lawyers frequently arrive at different conclusions regarding available options, based on each bankruptcy lawyer's level of experience and expertise. All debtors who have questions regarding discharge and confirmation through the Illinois federal court system should compare the advice of several bankruptcy lawyers to establish the range of options available.

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