The term bankruptcy protection is used a lot. The actual term is automatic stay. It is in section 11 U.S.C. 362 of the United States Bankruptcy Code. I am going to give you the laymen guide here. It is much easier to understand.
In a nutshell, it means creditors can't call you, write you, email you, sue you, while you are in Bankruptcy.
If a creditor violates the automatic stay in bankruptcy. Meaning someone approaches you about money you can sue them for contempt of court for violation of bankruptcy law . You can collect actual damages plus attorney fees. Sometimes you can collect punitive damages. If the creditor didn't have actual notice of the bankruptcy sometimes the damages are very nominal.
When you first file your case all the creditors you list are mailed a notice of your bankruptcy filing. If a creditors is missed your attorney will add them and mail them notice. If a creditor is missed in the whole bankruptcy as long as there are no assets in your case you can add anything that existed prior to your case being filed. That is what current bankruptcy law says. You can ad anytime in the future even after your case has been discharged.So the automatic stay in bankruptcy is a very powerful tool.
Under the Fair Debt Collection Practices Act or FDCPA if a debt collector tries to collect debt you don't owe you can file a Federal Law Suit against them. This means debt that was discharged in Bankruptcy. Even if the Creditor wasn't listed and they sell the debt to a debt collector and that debt collector tries to collect you can sue them. I will be happy to take that case.
Customers have questions, you have answers. Display the most frequently asked questions, so Please call me if you have any questions about the automatic stay at 810-632-9160
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