' Creditor Violated Automatic Stay - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

What Can You Do When a Creditor Violates the Automatic Stay Enacted by Filing for Bankruptcy?

One of the main reasons people choose to file for bankruptcy is because it creates an automatic stay. This is the legal restriction placed on creditors to stop contacting you about the money you owe them. Though there are many benefits to filing for bankruptcy, many people finally choose to take action to end the constant harassment by creditors and to put a hold on actions, such as foreclosure, that are in progress.

Unfortunately, not all creditors abide by the restrictions of the automatic stay. Whether on purpose or by accident, it is possible for you to be contacted after an automatic stay is enacted. Most of the time, contact is made after an automatic stay due to timing or ignorance. For one reason or another, the creditor does not realize an automatic stay is in place. They continue collection efforts as usual. Very rarely is an automatic stay out-right ignored. Penalties for intentionally ignoring an automatic stay are steep and most creditors know this.

When Does the Automatic Stay Occur?

An automatic stay goes into place the moment you file for bankruptcy. However, this doesn’t mean your creditors are aware of your automatic stay immediately. In some cases, it could take a week or two for them to receive notification. It is possible for them to find out sooner if they are already registered with the court or subscribe to a service that notifies them automatically.

One you file, notification is generated and sent to the creditor identifying you as the borrower and explaining what they can and cannot do now that an automatic stay is in place. Chances are you will continue to receive calls and collection letters in the interim, before the creditor knows they must stop.

What Happens If a Creditor Violates the Automatic Stay?

If you do receive contact from a creditor once you file, you should inform them of the automatic stay, with your case number and the name of the bankruptcy court handling your case. If calls continue beyond the first time you give them this information, you have a right to take action against the creditor. Most of the time larger lenders know the risk of contact and will stop. However, there are some smaller lenders who ignore the risk or do not realize how severe a penalty there is for their actions.

The penalty for violating an automatic stay varies. It depends on what the creditor has done and whether their actions were deliberate. When the debt includes property, the creditor risks having to return the property to the debtor and compensate him or her for any damages suffered due to the violation, such as attorney’s fees, pain, and suffering.

Do you believe a creditor has violated the automatic stay in your bankruptcy? You need to contact your bankruptcy attorney immediately. He or she can advise you on how to proceed.

Are you considering bankruptcy and would like to speak to someone? Do you believe an automatic stay could aid you in dealing with your situation, we want to help. Contact the Law Offices of Robert M. Geller at 813.254.5696 to discuss your situation and to learn how bankruptcy can help you.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Should I Sell My Home to Get Out of Debt?

Debt is a common modern problem. Whether it's credit cards, student loans, or medical bills, debt can cripple even the...
Read More

What to Ask a Bankruptcy Lawyer

What should you ask a bankruptcy lawyer? Financial problems can be incredibly stressful. One option that many people turn to...
Read More

Is It Easy to File for Bankruptcy?

Bankruptcy is a legal process that allows individuals and businesses to eliminate or reorganize their debts. It offers relief to...
Read More

How to Stay Motivated to Pay Off Debt

If you are struggling with debt, you are not alone. The average American has tens of thousands of dollars in...
Read More

Can I Fire My Bankruptcy Attorney?

Filing for bankruptcy can be overwhelming. Your bankruptcy attorney plays a crucial role in navigating you through the process. Unfortunately,...
Read More

Am I Responsible for My Parent’s Credit Card Debt?

As we grow older, our parents also age. Sometimes they become dependent on us in many ways. Even if they...
Read More

How to Hide from Debt Collectors

There are many ways to “hide” from debt collectors. You can ignore their calls, not answer your door, or ask...
Read More

Is Your Spouse Responsible for Credit Card Debt in Florida?

Debt can be overwhelming, especially when you're not sure who is responsible for it. That's why it's important to understand...
Read More

What Happens If You Ignore a Debt Collector?

Debt can be overwhelming. It’s easy to let bills pile up and miss payments, and before you know it, you...
Read More

Can I Sue a Debt Collector for Emotional Distress?

Debt collectors can be aggressive when collecting unpaid debts. Some try to bully you into paying. Many leave you feeling...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions