What happens if a creditor continues to attempt contact with the debtor following the bankruptcy filing? When a debtor files for bankruptcy under the current bankruptcy code, an automatic stay is imposed and creditors are prohibited from contacting or attempting to collect from the debtor. If the debtor has not received a discharge, the creditor has violated the automatic stay and may be subject to sanctions. If the bankruptcy has been discharged, the creditor is also in violation of a discharge injunction and may face additional consequences.
The majority of the time, when a creditor contacts a debtor after a bankruptcy filing, it is an error on their part, and once they realize it, they cease all contact. When a creditor contacts a debtor after filing for bankruptcy, the debtor should promptly contact the bankruptcy attorney who represented them so that the attorney can notify the creditor of the violation and ask them to stop. A court will disfavor upon a debtor who attempts to sue a creditor after committing a simple error. Sometimes, when debts are sold to debt collection agencies, the company that purchased the debt acts more aggressively and irresponsibly, continuing to harass the debtor even after the debt has been discharged.
Legal action is warranted when creditors have been warned of a violation and continue to be more aggressive. A debtor may file a lawsuit or have sanctions filed against the creditor in order to halt further collection efforts and punish them for their egregious conduct. When a creditor continues to torment a debtor after filing for bankruptcy, it is essential to document all phone calls and their contents. This will assist in constructing a case against the creditor.
Depending on the circumstances of the case, the bankruptcy attorney may request legal fees from the creditor if a lawsuit is necessary. Depending on the strength of the case based on the creditor's violations, the bankruptcy attorney may be able to collect damages and attorney fees from the creditor.
If you or someone you know is being contacted by creditors who are attempting to collect on debts that were discharged in bankruptcy, you should contact the debtor's bankruptcy attorney immediately to determine if the violations warrant further legal action.""
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