Ohio Bankruptcy Law - "What happens if creditors try to collect while bankruptcy is pending?"

If creditors attempt collection any debt while an Ohio bankruptcy case is pending, court sanctions may be ordered by the court. Creditors are allowed to collect only specific debts and take specific actions which are authorized by the court. 11 U.S.C. 362 sets forth exceptions to the automatic stay. If a creditor desires to proceed with collection efforts, a motion must be filed seeking permission. Creditors who fail to obtain court permission are subject to sanctions. If creditors attempt collection of a discharged debt after a case is closed, the procedure is similar. The debtor may ask the court to reopen the case and impose sanctions upon the creditor. Available sanctions include a finding of contempt of court, specific injunctive relief, and the imposition of fines and incarceration. The most common sanction is the imposition of a civil fine.

Ohio Bankruptcy Law - Employer Liability

The code also specifically prohibits employers to discriminate against employees because of bankruptcy. To become actionable, the employee's bankruptcy proceeding must be the sole basis for discrimination. In practice, employers are well versed on discrimination law, and well advised by their attorneys concerning "plausible deniability." Any other basis, such as those commonly documented by memorandum warning of poor job performance, often relieve employers from liability. For employees, the bankruptcy discrimination statute is grossly ineffective.

The operation of law pertaining to federal debt relief is complex. State law statutes, federal rules, and decisions rendered by courts combine to establish a local standard for Ohio Bankruptcy Courts. Anyone who considers filing should, at a minimum, balance short term requirements to long term benefits. Each debtor is different. The most valuable benefits are a personal choice, with availability dependent upon the application of law to unique circumstances.

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