MANCHEE & MANCHEE, P.C.

Attorneys at Law


CONSUMER &

BANKRUPTCY LAW

AUTOMATIC STAY AND DISCHARGE VIOLATIONS

 

One of the important benefits of filing bankruptcy is the automatic stay that immediately stops creditors from trying to collect debts included in the bankruptcy.  This is a court order that prohibits creditors from calling the debtor, sending out statements or demand letters, filing suit or taking any other action to collect the debt that was owed on the date of filing.

After the case has been administered the automatic stay is replaced by the discharge injunction which is another court order that prohibits creditors from trying to collect the discharged debt. This means once a debt is discharged creditors cannot take any action to try to collect that debt.

Despite these injunctions, creditors may still try to collect your discharged debt.  If that happens, you may have a private cause of action in the bankruptcy court against the offending creditor. To protect your rights you should hire legal counsel as soon as you know there has been a violation.

If you receive statements, collection letters, telephone calls, or find creditors reporting your discharged debt on your credit with a balance due, then you should contact your bankruptcy attorney immediately.  Many bankruptcy attorney's don't handle stay enforcement, in which case
you can call us and we may be able to help you.

If you are the victim of a stay violation be sure and keep any letters, statements, or other written records of the collection effort. If you get phone calls be sure and get a complete identification of the caller and find out who they represents.