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Online Travel Company Challenges Airline's Automatic Stay

According to reports, an online travel provider is having trouble with a bankruptcy case. Last week, the company received disappointing news from the judge overhearing a Chapter 11 bankruptcy filing it is involved in. As with any bankruptcy case, an automatic stay was extended to the party that filed for protection. This automatic stay prevents creditors from contacting the bankrupt party during the filing process. If a creditor should attempt to collect during that time, it can be subjected to criminal punishment. The online provider is one of the creditors that are involved in a massive bankruptcy case involving an airline. Earlier this month the company asked the judge to lift the automatic stay so it could resume negotiations.

The judge denied the request and instead granted an extension to the airline. This gives the company more time to prepare for its reciprocal antitrust lawsuits, but prevents the online provider from working out any deals with the company in the meantime. If you were issued an automatic stay in your bankruptcy case but are being subjected to creditor harassment, contact the Malaise Law Firm today to seek immediate help from a South Texas bankruptcy lawyer from our team who can put an end to the abuse.

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