Contempt
Our team of attorneys and legal professionals will assist you through your legal entanglements with care and professionalism.
WhatsNew:
Dealing With This Economy
December 3, 2011
We have been busy at the firm helping our clients deal with this difficult economy. We have had some success recently filing Chapter 11's for a few individuals with multiple properties. A recent court ruling from the Middle District of Florida eliminated a major challenge to this type of bankruptcy. We have seen a drop in the number of Chapter 7 cases compared to last year but have been advised by the foreclosure attorneys that the next waive of foreclosures in coming soon. We expect to see a corresponding increase in Chapter 7 filings. Let us know if we can help you with your financial issues.
CurrentNews:
American Airlines Files Chapter 11
December 2, 2011
The parent company of American Airlines filed for bankruptcy protection in late November, seeking relief from crushing debt caused by high fuel prices and expensive labor contracts that its competitors shed years ago. For most travelers, though, flights will operate normally and the airline will honor tickets and take reservations. American said its frequent-flier program would be unaffected.
Recent Events:
The Local Bankruptcy Scene
November 28, 2011
In the Southern District of Florida, our firm has seen an increase in the unwillingness of Chapter 7 trustees to forgo the collection of potential funds. In Florida, an individual's exemptions in bankruptcy are guided by reference to state-not federal-law. An individual is entitled to certain exemptions of personal and real property. Generally, if an individual was over their exemption limit, i.e. having certain property not entitled to exemption, trustees would generally forfeit their right as administrator of the bankruptcy estate to sell the non-exempt asset if the asset was of little value or considered "unsellable." However, our firm has observed a recent uptick in the willingness of the trustee to sell non-exempt assets worth little, seemingly because trustees do not want to lose out on the potential collection of funds. Often, the sale generates funds in an amount that does little more than pay for trustee and professional fees. If you are considering filing for bankruptcy protection, it is imperative to consult with a bankruptcy attorney who can explain your options and offer pre-bankruptcy planning to avoid these common pitfalls.
Contempt for Violation of the Bankruptcy Stay
Most creditors know that the filing of a bankruptcy action invokes the 'automatic stay,' a Federal injunction against collection efforts. The entry of a bankruptcy discharge makes that injunction permanent. Despite this, a creditor will occasionally violate the automatic stay or discharge injunction and try to collect a debt included in the bankruptcy. When that happens the Debtor may seek sanctions against the creditor, including damages, out of pocket losses, punitive damages and attorneys fees.
Quite often a letter to the creditor advising of the perils of violating the automatic stay will be sufficient to stop the creditor action. If the creditor persists it is important to move quickly to bring the offending action to the attention of the Bankruptcy Court. A Motion for Contempt and Sanctions may be appropriate.
In a recent case an insurance company levied on the personal property of one of our clients after we obtained a discharge in bankruptcy of the insurance company debt. The insurance company showed up at our client's home along with two Federal Marshals, a moving truck and movers and two appraisers. The company had been advised that the client had a special needs daughter particularly susceptible to emotional damage. It took over one hour of phone calls to stop the levy. At trial the Bankruptcy Judge found that the insurance company levied on our client with "the intent to cause as much psychological damage as possible." The case settled for $275,000.00.
In another recent case a creditor continued to send threatening and defamatory text messages to our client after we filed his bankruptcy case. We were successful in stopping this action and the creditor was ordered to pay approximately $20,000.00 in attorneys fees.
We have filed motions to stop continued debiting of a clients bank account or credit card, to stop phone calls and letters, threatening emails and other forms of collection and harassment. State Court actions that may be legitimate under Florida law may be inappropriate following a bankruptcy if the purpose, in part, is to harass the Debtor. You should seek legal assistance if this happens to you. We are also available to co-counsel on cases of contempt for violation of the automatic stay or the discharge injunction.
David W. Langley
8551 West Sunrise Blvd.
Suite 303
Plantation, FL 33322
954-356-0450
dave@flalawyer.com