Berkeley, CA asked in Bankruptcy for California

Q: I am a defendant in a state court complaint filed against me as Pastor where were are a congregational church

Four members filed this in the name of the church as to trying to oust me as Pastor. I am in a confirmed 13 and they are creditors, they filed a motion for no stay, it was granted by default. I filed contempt against for the court order, they filed no opposition, judge did not grant the sanctions he alleges they did not violate the court order but ordered them stayed for proceeding against me in state court for damages as long as i am in the 13. Was the court wrong for denying the sanctions because he alleges they did not violate the stay or order? Can these creditors amend the state court complaint to remove the damages and proceed against the preliminary injunction, r are they bound by the plan under section 1327 regardless if there is no stay? Why do they keep saying there is no stay?<br/>


<em>Content added on September 30th, 2011 at 11:24 AM</em>


Please answer my question and state codes and citation

Related Topics:
1 Lawyer Answer
Jeffrey Moore
Jeffrey Moore
  • Bankruptcy Lawyer
  • Campbell, CA
  • Licensed in California

A: If a creditor files a Motion for Relief from Automatic Stay and it's granted, the creditor can proceed in state court. It does not matter whether the Motion for Relief from Stay was granted by default or after hearing. Most courts would not grant the Motion even by default if it had no merit on its face.

The conduct of a creditor is not wrongful if it was not in violation of the stay, so contempt sanctions would not be granted.

The last part of this question is difficult to answer without more facts but a creditor does not need to amend a state court complaint to remove a prayer for damages if the stay has been lifted as to that matter.

I suggest you retain local bankruptcy counsel to represent you.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.