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What to Do if Creditors Disobey the Automatic StayFiling for bankruptcy provides relief in many ways, and one of the immediately noticeable ways is the automatic stay on creditors. After you have filed, creditors are legally required to stop contacting you or attempting to collect on their debt. This includes:

  • Calling you or sending letters
  • Foreclosing on or repossessing your property
  • Turning off your utilities
  • Garnishing your wages
  • Filing or continuing a lawsuit

The IRS is still allowed to send notices of tax deficiencies, and the automatic stay will not stop a court action that is trying to establish child support. Otherwise, you should stop hearing from creditors in a matter of days, if not immediately. If a creditor continues to harass you after you have filed for bankruptcy, you need to talk to your bankruptcy lawyer about how to stop the creditor and whether you should take legal action against them.

Determining Your Response

How you respond to a creditor continuing their debt collection action against you depends on whether the creditor knowingly violated the automatic stay. On your end, you can check whether you forgot to include the creditor in your bankruptcy filing, which would explain why they were unaware of the automatic stay. If the creditor is already listed in your bankruptcy, you need to notify them of the automatic stay and tell them to cease all communications and debt collection efforts. Your lawyer can prepare the message to make sure that the creditor can confirm your bankruptcy case. Warning the creditor will be enough to stop them in many cases. 

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National Association of Consumer Bancruptcy Attorneys State Bar of Texas
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