The Latest:

Employers must pay 65% of an employee's COBRA payment until September.  The federal government will issue a credit to the employer through payroll tax for the portion underwritten by the employer.  If you are covered by COBRA, or could have been, due to a recent layoff, you should have received a new COBRA notification in March.

The Supreme Court issued a decision clarifying that the anti-retaliation provisions of the civil rights laws cover an employee's statements in an internal investigation.

Congress passed the Lily Ledbetter Act, overturning the Supreme Court's decision in 2007 barring the courthouse doors to victims of ongoing discrimination in pay scales. 

See What's New for more detail.

Bankruptcy Law

 

Personal and Business Bankruptcies

The revisions to the Bankruptcy Code enacted in April 2005 took effect, for the most part, in October 2005. These revisions impose new hurdles to the ability of consumers to obtain discharges under chapter 7, and increase reporting and other requirements for all debtors and their lawyers.  I am no longer accepting clients for the purposes of filing bankruptcy petitions.  I am available to consult or represent parties in bankruptcy litigation matters, such as preference actions or non-dischargeability complaints.  

I also represent small businesses in litigation, and am familiar with the bankruptcy issues that frequently arise.  For example,  when someone who owes you money files a bankruptcy petition, your rights to collect on the debt are automatically enjoined, or "stayed," until further court order, often permanently. Actions such as foreclosures, wage garnishments, pending lawsuits, car repossessions, and dunning letters must all cease.

Because the policy of the Bankruptcy Code is to provide debtors with a fresh start, many creditors will find their debts discharged permanently, without getting any further payments from the debtor. Creditors do have options in some circumstances, however. Your rights as a creditor vary depending upon factors such as the following:

bulletthe bankruptcy chapter filed;
bulletwhether the debt was used to buy consumer goods;
bulletwhether it is a secured debt;
bulletthe amount and timing of the debtor’s recent payments to you; and
bulletwhether you have challenges to the discharge of the debt.

The new law may result in more debtors starting, but failing to finish, their bankruptcy processes.  In the case of dismissal of the case, the automatic stay is dissolved and state court proceedings can resume.