On March 4, 2019 the Bankruptcy Appellate Panel of the 6th Circuit Court of Appeals ruled on multiple issues important to debtors.
- Can an action against a creditor for a stay violation be brought in a subsequent bankruptcy or does it have to be brought in the original case?
- Does the Rooker-Feldman doctrine divest jurisdiction from the bankruptcy court when a state court judgment is entered while the bankruptcy is pending?
- Does the automatic stay prohibit collection of a property settlement stemming from a divorce decree?
- Is the continuation of a contempt proceeding against a debtor a violation of the automatic stay when the contempt was found pre-petition, but the “sentencing hearing” at which the court ordered the debtor jailed for failure to pay a property settlement was post-petition, and the only condition to purge the contempt was to pay the property settlement?
- Does a creditor and her legal counsel violate the automatic stay when they take no action to stop a state court from proceeding with a contempt hearing, the stated purpose of which is to confine the debtor to jail for failure to pay a dischargeable property settlement, and in failing to act to prevent the state court from sentencing the debtor to jail under such circumstances?
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