Understanding Bankruptcy, 8/9/2018

BY MICHAEL A. CIBIK, ESQUIRE
AMERICAN BANKRUPTCY BOARD CERTIFIED
Question: Does bankruptcy have any effect on arrest warrants?

Bankruptcy has no effect on criminal arrest warrants. However, there is a stay on civil arrest warrants.

When a bankruptcy is filed, the automatic stay arises by operation of law. What that means is that merely by filing a bankruptcy case, a legal bar goes into effect stopping all collection activities, including the right of the sheriff to arrest you on a civil warrant. This is an attractive side benefit of the ultimate goal of bankruptcy: Getting debts discharges is wonderful, but getting a little breathing room while that process goes forward is welcome relief.

Procedurally, it is important to get expedited notice of the bankruptcy filing to the judgment creditor. It is their job to contact the sheriff and call them off. If they do not act quickly to do so, and you are arrested, you will have a claim for a violation of the automatic stay, entitling you to recover damages and attorneys’ fees.

Next Week’s Question: Can I pay my taxes by credit card then file bankruptcy?

Click on the link below, “Home,” to visit the CIBIK & CATALDO WEBSITE:
https://philadelphiabankruptcylawyers.com/macam@ccpclaw.com
(215) 515-5955

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