Eichenbaum and Stylianou LLC is a large debt collector’s firm in New Jersey. Judge Novalyn Winfield found that they violated our client’s bankruptcy protection under 11 U.S.C 362 ( Bankruptcy Case 11-36472; Adversary 11-02539)
The bankruptcy law provides that once a client files for Bankruptcy protection all attempts to collect a debt must end. Specifically 11 U.S.C 362 states: Except as provided in subsection(b) of this section, a petition operates as a stay of (1) commencement or continuation including the issuance of employment or process of judicial, administrative, or actions proceeding against the debtor. Our client filed for bankruptcy protection, however the law firm did not stay the action case law states that ” the provisions of the automatic stay place the responsibility to discontinue any pending collections proceeding squarely on the shoulders of the creditors who intiated the action” In re Sucre, 226 B.R 340 (SDNY 1998) see In the Matter of Sams, 106 B.R. 485,490 (Bankr S.D. Ohio 1989).Judge Winfield found that the action was willfuly because they had knowledge of the bankruptcy proceeding, following In re Kortz, 283 B.R. 706,712 (Bankr N.D. Ohio 2002).
Know your rights and make sure all creditors discontinue actions commenced against you.