' 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 even 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 and continues 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, though 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, but 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 depending 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.

If 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.

And if you are considering bankruptcy and would like to speak to someone, or 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

Is Alimony Dischargeable in Bankruptcy?

One of the biggest concerns that people have when considering bankruptcy is the effect on their financial obligations, including spousal...
Read More

Should You File Bankruptcy Before or After Divorce?

Marriage and finances can be a tricky combination. Timing is also an issue when it comes to filing for bankruptcy....
Read More

What’s Better Bankruptcy or Debt Settlement?

The idea of being trapped in debt can be overwhelming and all-consuming. Financial struggles can happen to anyone through no...
Read More

Can I Keep One Credit Card During Bankruptcy?

The decision to file for bankruptcy is never easy. People considering this option often struggle with financial stress, debts, and...
Read More

How Does Inflation Affect Credit Card Debt?

Credit card debt can be overwhelming. This is especially true during times of inflation. What is Inflation? Inflation is a...
Read More

Can Personal Bankruptcy Affect My Business?

If you’re a business owner considering filing for bankruptcy, it’s important to understand how this decision impacts your business. From...
Read More

Can You File Bankruptcy with Money in the Bank?

Bankruptcy is a serious decision and has major consequences on your credit as well as your overall financial situation. If...
Read More

Will Declaring Bankruptcy Affect My Spouse?

Are you considering declaring bankruptcy? Are you married? If so, you may be wondering how it will affect your spouse....
Read More

Will Filing Bankruptcy Stop Foreclosure?

Many people facing foreclosure wonder if filing for bankruptcy will help them avoid the loss of their homes. While filing...
Read More

What Causes Someone to File Bankruptcy?

People file for bankruptcy for a variety of reasons. It’s an important decision to make and one that should not...
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