Bk court ruled in favor of debtor after discharge injunction was violated. A company willfully filed a merit-less lawsuit in state court against debtor and violated the injunction. BK court later awarded sanctions to debtor to compensate for attorney fees. Now the company seeks Chap 11 protection from the collection of these sanctions. Company's conduct was sanctioned by BK court, how can that now be discharged by the same court?
Chapter 11 is usually filed to allow a company to reorganize and propose a plan for repayment to creditors. The automatic stay (like an injunction) that went into effect when the case was filed, stops all creditors from pursing their own collection efforts against the company. So, for now, you are "stayed" from collecting against the company. In a Chapter 11, depending upon the type of debt, the creditors may receive 100% of what they are owed or a percentage. So, the filing of the Chapter 11 does not necessarily mean you won't get paid. As a creditor, you need to monitor the case carefully; there will be a deadline to file a claim and eventually, hopefully, a plan of reorganization and disclosure statement about how you and other creditors will be paid. I recommend you seek guidance from a certified bankruptcy specialist, or a bankruptcy attorney with Chapter 11 experience in your area to assist you further in monitoring the case and ensuring protection of your claim.
