Accruing Interest on debt during Auto Stay and before discharge revoked, and creditor legal fees
Posted: Thu Apr 07, 2016 12:23 pm
The Superior Court Judge is the one who sets status hearings on the debtor's bankruptcy. It pretty much happens in every pending civil action when the case is stayed by an intervening bankruptcy filling. This is likely the judge making sure the case does not linger on the docket if the bankruptcy is dismissed or discharged rather than creditor's counsel attempting to run up fees. Most creditors dismiss collection cases w/o prejudice after a debtor files for bk relief. Your client is the exception to the rule because the creditor believes the debt should be excepted from discharge.
Mark Jessee
Sent from my iPhone
> On Apr 7, 2016, at 11:29 AM, Stephen Mark legalsos4u@yahoo.com [cdcbaa] wrote:
>
> Thanks, Steven. I am focusing more on the attorney fees being sought during the time when the automatic stay was in effect. Particularly, the several continuances/hearings/updates the attorney had in superior court rather than waiting for the bankruptcy to be closed or discharged, etc. It just seems wrong that an attorney can churn fees in this manner when noting can be done until the BK trustee/Judge terminates the case one way or another.
>
> Thanks,
> Stephen
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>
> On Wednesday, April 6, 2016 6:18 PM, "'Steven B. Lever' sblever@leverlaw.com [cdcbaa]" wrote:
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>
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> Hi Stephen:
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> It the debt is ruled not dischargeable, then all interest before and during the bankruptcy is also not dischargeable.
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> It goes back to whatever was allowed under the contract.
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> Steve Lever
>
> Sent: Wednesday, April 06, 2016 5:38 PM
> To: cdcbaa@yahoogroups.com
> Subject: [cdcbaa] Accruing Interest on debt during Auto Stay and before discharge revoked, and creditor legal fees
>
>
> Dear Listserv:
>
> Just double-checking the law on the ability of creditor to accrue interest on the debt while BK is active (auto stay), and also during time of AP until time when discharge was revoked.
>
> Additionally, whether creditor's counsel should be able to later seek legal fees for work being done in state court action during the the time of the automatic stay (no relief had been requested or received). Creditor lawyer continued to set hearings for review of defendant-debtor status rather than just wait for notice of BK case being closed or dismissed.
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> Kind regards,
>
> Stephen Stern, Esq.
>
> Stephen Stern Law Office
> 1026 Palm Street, Suite 215
> San Luis Obispo, CA 93401
> (805) 543LAWS
>
>
>
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