On April 12, in Bailey v. Davant (In re Bailey) , the U.S. Bankruptcy Court for the Northern District of West Virginia addressed the question of whether a creditor and her counsel could both be held liable for violating the automatic stay by failing to take affirmative steps to withdraw a pre-petition garnishment of the debtor’s wages. The debtor sought to have his ex-wife and her counsel held jointly and severally liable for failing to immediately lift the pre-petition garnishment order upon notice that the debtor had filed for bankruptcy.
The court held that both the creditor/ex-wife and her counsel were liable to the debtor for a willful violation of the automatic stay, because they failed to take timely and effective affirmative acts to release the garnishment on the debtor’s wages.
A Divorce and a Bankruptcy
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