Personal Injury Lawyer

After filing for bankruptcy, an automatic stay is enforced as a way to protect debtors from creditors who are seeking payment. As an attorney is aware, creditors can be quite persistent and annoying in their attempts to collect from a debtor. These agencies can become even more frustrating if they don’t respect an automatic stay that was placed on a debtor who filed for bankruptcy. If you are dealing with a creditor who just won’t stop, then it’s time to talk with a legal team.

Here we have provided information about what to do a creditor of yours has violated an automatic stay: 

When a Creditor’s Violations Were Deliberate

Sometimes, creditors may accidentally contact a debtor without intent or malice. If this is the case, then perhaps all that is needed is a phone call or email to remind them of the automatic stay. When a creditor breaches a stay rule, it is usually because of poor timing and lacking knowledge of bankruptcy laws. But, there are some agencies who know they are violating the automatic stay, and just don’t care. This is when you should contact an attorney for advice on what to do next. 

Keeping a Log of All Contact

Whenever a creditor reaches out to you, log a journal for what time, date, and in what way they contacted you. There are creditors who become overzealous and intentionally try to work around the bankruptcy code in hopes that the debtor won’t take action. Unfortunately, everyday people may not know their rights when it comes to automatic stay after filing for bankruptcy, and don’t pursue damages due to lack of information. An attorney can help you gather proof that a creditor has purposefully breached the automatic stay, so you can seek financial compensation. 

Penalties for Violating the Stay

Between the time when the bankruptcy petition was filed and when the creditor receives notice, collection letters, phone calls, and other actions may have been taken against the debtor. The creditor may not face repercussions if they can show they didn’t become aware of the automatic stay until after these actions were taken. Your attorney can investigate into the truth of his excuse further.

Depending on the debtor’s circumstances, a creditor violating the automatic stay be more than just pesky phone calls. A creditor may have repossessed a vehicle or foreclosed on a property after the automatic stay had begun. The court is likely to necessitate that the credit company returns the property and then reimburses the debtor for damages, out-of-pocket expenses, legal fees, and mental anguish.

We understand that accepting you had to file for bankruptcy may have been difficult enough, so the last thing you need is more issues to arise because creditors weren’t paying attention or didn’t care. Lawyers are ready to book you a consult and answer any questions you have about a creditor who violated the automatic stay. Contact a bankruptcy lawyer in Melbourne, FL today to learn more. 

Thanks to the Law Offices of Arcadier, Biggie & Wood for their insight into bankruptcy law and debtor’s rights.