I’m continually expanding my bankruptcy law studies and now reading, Bankruptcy and Debtor/Creditor, Fifth Edition by Brian A. Blum. In this book, Blum discusses the two most important forms of injunction in a bankruptcy case as arising as a matter of law, which means automatically, at certain stages of the proceedings. A basic definition of an injunction is a court order to do something or refrain from doing something. So, in my bankruptcy alphabet, I is for Injunction.
The first is the Automatic Stay under 11 U.S.C. 362, which serves as an automatic injunction to stay any and all collections against the debtor the moment the case is filed. The automatic stay enjoins all actions to collect debt due by the debtor, stops wage garnishments and foreclosures. The second is the injunction on actions to collect a discharged debt, which goes into effect under Section 524(a)(2) as an incident of the discharge.
These two injunctions serve to place a wedge between debtor and creditor and upon successful completion of the bankruptcy case, the debtor receives a court Discharge Order, which serves to permanently enjoin actions to collect on the discharged debt. Don’t let debt collectors try to convince you that they are helping to rehabilitate your credit by offering you credit on the condition that you except a balance due on a debt you have previously discharged in bankruptcy! Call your local bankruptcy attorney with post bankruptcy questions. We’re here to help.
Other Attorneys Blogging the Bankruptcy Alphabet Believe I is for:
Income – New York Bankruptcy Attorney, Jay Fleischman
Income – Marin County Bankruptcy Attorney, Cate Eranthe
Income Tax Refunds – Allen Park, Michigan Bankruptcy Attorney, Christopher McAvoy
Independent Contractor – Big Island Bankruptcy Attorney, Stuart T. Ing
In Forma Pauperis – Colorado Springs Bankruptcy Attorney, Bob Doig
Insiders – Los Angeles Bankruptcy Attorney, Mark J. Marcus
Insiders – Metro Richmond Consumer & Bankruptcy, Mitchell Goldstein
Insolvency – Wisconsin Bankruptcy Lawyer, Bret Nason
Instant – San Francisco Bankruptcy Attorney, Jeena Cho
Insurance – Pittsburgh Bankruptcy Attorney, Shawn Wright
Internal Revenue Service (IRS) Tax Debt in Bankruptcy – Livonia Michigan Bankruptcy Attorney, Peter Behrmann
Involuntary Bankruptcy – Cleveland Area Bankruptcy Lawyer, Bill Balena
Involuntary Petition – Omaha & Lincoln Nebraska Bankruptcy Attorney, Ryan D. Caldwell
IRA’s, Pensions, etc., will you lose them in Bankruptcy? – Philadelphia Suburban Bankruptcy Lawyer, Chris Carr
IRS – Northern California Bankruptcy Lawyer, Cathy Moran
Investigate Your Options — Philadelphia Bankruptcy Lawyer, Kimberly Coleman
Photo Credit: Leo Reynolds