How can I help you win a case of automatic stay violation?
Once you contact us:
- You will work with one of my assistants, in our law firm, who will ask you for a brief of your case.
- I will review your file and directly contact you.
- I will check the details of your bankruptcy petition.
- I will assure you that the creditors cannot harass you.
- I will track the punitive damages and take action against it.
- I will find the creditor who has made the willful violation of the automatic stay in your case.
- I will help you put a hold on wage garnishment.
Automatic stay offers a wide range of protection to a debtor’s property and starts immediately after a bankruptcy case is filed in a state court or supreme court. The stay prohibits nearly all forms of collection attempts and actual damages done by creditors or debt collectors. Thus, once the bankruptcy petition is done, the stay is in effect. Therefore, it relieves the debtor and gives him additional time for debt discharge or repayment.
It wouldn’t be imposed if you had two bankruptcy cases dismissed in the previous year and filed a new one in the current year. Even if it is imposed, it stays in effect for only 30 days. In this situation, you have to file at the court to extend the automatic stay.
- You need to send a direct statement to the creditors.
- There is an automated system to send alerts to creditors.
- Send the receipt of the court notice mentioning the date.
- Attach a copy of the bankruptcy petition.
Section 362K1 of the federal Bankruptcy Code mentions that almost all forms of collection attempts including debtor’s wage garnishments, collection efforts via calls and emails, repossession of debtor’s property or assets, foreclosures, and related legal processes or lawsuits should be stopped immediately after a successful filing of the bankruptcy petition.
Usually, it is imposed 30 days after filing the bankruptcy petition. It doesn’t always safeguard debtors from all creditors. Thus, creditors must file a motion in an individual case for imposing or continuing the automatic stay. Debtors have to pay a separate fee for this. Since everything must be done quickly and the bankruptcy judge has to preside over the case immediately, it’s best to consult a bankruptcy attorney before filing a motion.
If it is a willful violation of the bankruptcy code, we will help you in the following ways:
- We will inform your creditor about the bankruptcy upon notice.
- If the violation continues, we will alert the bankruptcy court.
- Based on the report, the bankruptcy judge will take further action.
- Filing a lawsuit will be the next step.
Bankruptcy doesn’t discharge non-dischargeable debts. However, for a bankruptcy filer, an automatic stay is imposed on the non-dischargeable debts, too. However, once that stay ends, creditors can resume collection activity. The same rule applies to secured creditors.
Creditors are not entirely powerless after an automatic stay is imposed. If they want to resume the collection process, they can file a motion for relief from the court. If the motion is filed correctly and the bankruptcy court approves, it will be revoked. Creditors may resume the collection process once again.
Well, I'll try to prove 3 points before the court, and these are:
- The automatic stay violation has happened.
- It has been a willful violation.
- The violation leads to actual damages.
Sometimes, the federal courts remain closed due to unavoidable circumstances like pandemic, even when your case is in process. In those situations, the automatic stay remains in effect. Creditors can’t make collection efforts during this period.
There are a couple of grounds based on which creditors can appeal for automatic stay revocation. Some of them are given below:
- Your property value is less than the debt amount.
- The property is not required in the reorganization of debt.
- Lack of adequate protection for the collateral against the debt.
It means that the automatic stay is terminated, and the property is out of the bankruptcy estate. Creditors are free to foreclose or repossess the property in accordance with state law. It happens when the debtor doesn’t file a statement of intention on whether he or she wants to surrender or redeem or affirm the property on time.
Usually, creditors can’t file lawsuits against the bankruptcy filer after receiving an automatic stay. If creditors want to file lawsuits outside bankruptcy, then they have to appeal and receive stay relief from the court. They have to give valid reasons behind why they want to file lawsuits outside bankruptcy.
Last Updated on: Wed, 01 Sep 2021