If you’re struggling with debt, you’re likely familiar with protections against creditor harassment. But what happens if they contact you during or after bankruptcy? Here’s what you need to know:
Protections During Bankruptcy:
- Automatic Stay: Filing triggers a court order prohibiting creditors from collection activities like contacting you, suing you, or repossessing collateral.
- Violation Remedies: If a creditor violates the stay:
- You can request the court to order the return of repossessed property.
- You may be entitled to compensation for losses, attorney fees, and emotional distress.
- The court can impose sanctions like fines for contempt of court.
Protections After Bankruptcy:
- Discharge: Completing bankruptcy discharges most debts, meaning you legally don’t owe them anymore.
- Discharge Violation: If a creditor attempts to collect discharged debts:
- You have similar rights as during stay violations, including seeking compensation and attorney fees.
- The creditor may face court sanctions.
Things to Remember about Creditor Contact:
- Most creditors respect the law, but violations can occur.
- Fighting back against violations typically doesn’t cost you anything upfront, as attorney fees may be recovered.
- Seek legal advice: An experienced bankruptcy attorney can guide you on your options and ensure your rights are protected.
We can help you navigate the legal landscape and enforce your rights effectively. Don’t hesitate to reach out to us if you’ve experienced creditor harassment during or after bankruptcy.
