- 11 U.S.C.
Velasquez v. Hanes PR Inc. (In re Velasquez)
Jul
02
2010
Ruling
State court action against corporation did not violate stay in case of individual debtors.
Procedural posture
Plaintiff debtors filed an adversary proceeding against defendants, a creditor and its attorney, for willful violation of the automatic stay by having moved the local court to continue a collection of money proceeding against debtors. Defendants moved to dismiss, alleging that there was no violation of the automatic stay, and also filed a motion requesting sanctions against the debtors under Fed. R. Bankr. P. 9011.
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Court
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