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116 Banking L.J. 172 (1999)
Courts Generally are Reluctant to Bar Creditors from taking Action against Non-Debtors, Although Some Cases May Warrant Section 105(A) Injunctions of Such Action

handle is hein.journals/blj116 and id is 172 raw text is: BANKRUPTCY FOR BANKERS
NEIL H. ACKERMAN
COURTS GENERALLY ARE RELUCTANT
To BAR CREDITORS FROM TAKING ACTION
AGAINST NON-DEBTORS, ALTHOUGH SOME
CASES MAY WARRANT SECTION 105(A)
INJUNCTIONS OF SUCH ACTION
Immediately upon the filing of a bankruptcy petition either by or against
a debtor, an automatic stay goes into effect against almost all collection
activities against the debtor or all attempts to collect property of or from the
debtor or from the bankruptcy estate.' Except in chapter 13 bankruptcies,
this automatic stay does not apply to third parties who guarantee debt of the
debtor, who are principals of the debtor, or who control the debtor.2
In an effort to stop collection actions targeted at these third parties in
other types of bankruptcy cases, debtors often ask Bankruptcy Courts to
enter injunctions under Section 105(a) of the Bankruptcy Code.' Section
105(a) provides Bankruptcy Courts with general equity powers to issue any
1 A bankruptcy estate is created automatically upon the filing of a bankruptcy petition and consists,
among other things, of all of the legal and equitable interests of a debtor in property as of the filing of
the bankruptcy petition as well as certain property acquired by the debtor postpetition. See generally 11
US.C. §541 (a).
2 Chapter 13 of the Bankruptcy Code explicitly provides for the issuance of a stay to a non-debtor,
where the non-debtor is co-liable on consumer debts with, or has secured consumer debts for, a debtor.
See 11 U.S.C. § 1301.
In certain instances, debtors also have sought to rely on the All Writs Statute, 28 U.S.C. § 1651, which
is applicable to all Federal Courts including Bankruptcy Courts.
Mr. Ackerman is a member of Ackerman & Terry, LLC, in Westbury, New York.

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