Author: Andrew M. Thaler
The Bankruptcy Code provides for the imposition of an “automatic stay” of the commencement or continuation of actions against the debtor that were or could have been commenced before the bankruptcy filing or to recover pre-petition claims against the debtor unless an exception applies.
In a recently decided case, the Debtor was embroiled in state court divorce proceedings. Debtor was found to be in willful violation of the state court’s pre-petition order. The state court scheduled a contempt sentencing hearing which took place after the debtor filed bankruptcy. The state court found that the automatic stay did not apply to the hearing and ordered the immediate incarceration of the Debtor for 90 days or until such time as he paid $20,000 to Debtor wife’s attorney for attorneys’ fees incurred in connection with the divorce that had been reduced to judgment pre-petition.
In a recently decided case, the Debtor was embroiled in state court divorce proceedings. Debtor was found to be in willful violation of the state court’s pre-petition order. The state court scheduled a contempt sentencing hearing which took place after the debtor filed bankruptcy. The state court found that the automatic stay did not apply to the hearing and ordered the immediate incarceration of the Debtor for 90 days or until such time as he paid $20,000 to Debtor wife’s attorney for attorneys’ fees incurred in connection with the divorce that had been reduced to judgment pre-petition.
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