Case: Procedures Used in Collecting Pre-Petition Debts After Bankruptcy Filing at Issue Merits Denial of Summary Judgment (D.P.R.)

Summary judgment denied in claim that Puerto Rico Treasury violated the bankruptcy automatic stay when it sent collection letters to Debtor’s business operated as a sole proprietorship after Debtor’s individual petition was filed, a district court held. Debtor filed Chapter 13 bankruptcy. The plan was confirmed and Debtor was granted post-confirmation modification. Debtor claims that the Puerto Rico Treasury Department engaged in efforts to collect pre-petition debts from Debtor when the automatic stay was in effect. After being given the notice of the filing, Treasury continued with collection efforts delivering a notification of garnishment to Debtor’s business. Debtor alleged that ...