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Bankruptcy does not prevent airline crash suit, judge rules

Air carriers Pinnacle Airlines Corp. and Colgan Air, filed for bankruptcy. The companies provided services for Continental Connection. A May 15, 2012 New York Law Journal article discussed a Continental Connection/Colgan flight that had crashed before the bankruptcy, near the Buffalo Niagara International Airport .

The Chapter 11 bankruptcy was designed for airline reorganization. A case was brought forth to a judge of Western District of New York  regarding both the accident and the bankruptcy. The judge found that the airline’s bankruptcy status does not protect it from non-bankruptcy-related parties. That is, the people on behalf of those that were injured or killed in the plane crash can continue to get information against defendants that did not file bankruptcy.  In bankruptcy, a “stay,” or cessation of efforts, protects the party that filed bankrupt from lawsuits against it. Additionally, a stay orders those suing the party filing bankruptcy to cease lawsuits against it. Only a court order can permit a lawsuit against the party filing bankruptcy.

If you are considering filing for bankruptcy, you should seek the assistance of a qualified attorney. Jayson Lutzky has over 29 years of experience practicing bankruptcy law and has worked for thousands of satisfied clients. To set up a free initial consultation, contact the law offices of Jayson Lutzky, P.C.at (800) 660-5299 or contact us via our website, www.BankruptcyNYC.com.

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