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Lawyer Sanctions for Willfull Violation of Chapter 13 Stays


ghacorp
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Any of you legal beagels happen to know what possible sanctions exist against attorneys who file lawsuits then attempt to execute Sheriff sale against real property for satisfaction of an HOA special assessment while in an a confirmed and operating Chapter 13 bankruptcy reorganization plan? (There was NO prior Motion to the court lifting the Stay!)

It appears the lawyer who is a bona-fide collection attorney had knowledgeaforethought of the automatic stay, but proceeded to execute a Sheriff sale for satisfaction of this unsecured debt regardless. When I became aware of the upcoming sale date, I contacted the Sheriff's office; the Sheriff then called the attorney, who hand-carried over a Stay letter stating to withdraw the Sheriff sale because "the court would prohibit such action on a defendant who is in C13 bankruptcy". Meanwhile, he is billing the condo association thousands of dollars in fees for his preumed unlawful services. What to do next?

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Well, the first thing you do is go to the Bankruptcy Judge and fill him in on the goings on. Whether you simply ask for a meeting in his chambers, or you file a motion for sanctions in his court, depends on the circumstnaces, I really dont know. You have to read up on it, read the BK rules about violations of the stay, etc. It lays out proceedure issues. Also, if the specific court you are in has "local" rules on this, read and follow them.

Needsless to say the judge is gonna be PISSED.

I did see somehting myself i BK court many many years ago. I was awaiting my discharge hearing, and a little old lady was there for hers, with a re-affirmation for Sears included. The judge started questioning her about it, and the Sears lawyer had told her crap about repo-ing the refridgerator and how noone would sell her a replacement because of the BK, etc.

Well, the judge on the spot sancioned the Sears lawyer, called him forward, and ordered him to BUY HER A NEW FRIDGE. And pay to haul away the old Sears PoS fridge he had threatened to repo ;-)

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