For many in overwhelming amounts of debt, determining the best course of action can be incredibly difficult. However, many choose to seek financial relief through bankruptcy. If this reflects your process, it’s important to understand what rights are afforded to you during this process. One of the most critical protections is the automatic stay. Unfortunately, many are unaware of this, which can lead to a creditor violating it. If this occurs, you may be able to hold the creditor liable. The following blog explores what you should know about these matters and how a California debt collection harassment lawyer can help fight for you.
What Is the Automatic Stay?
When you file for bankruptcy, you will be granted what’s known as an automatic stay for the duration of this process. Essentially, this means that all collection efforts against you must stop until your bankruptcy case is officially closed. As such, creditors must cease all phone calls, judgments, or lawsuits against you.
It’s important to understand, however, that there are certain collectors that may continue seeking payments from you. This includes matters related to family law, such as late alimony or child support payments, tax audits, and restitution for a crime you’ve been convicted of.
You should also note that in some cases, the creditor may petition the court to have the automatic stay lifted. If granted, the creditor would be allowed to continue collection efforts against you.
If a Creditor Violates This, What Can I Do?
When in the bankruptcy process and the automatic stay is violated by a creditor, it’s important to understand your legal options. Generally, the first thing you must do if your bankruptcy rights are violated is check to ensure this creditor was included in your petition. If the creditor is included on the list, it means they were informed of your filing and subsequent automatic stay.
You should document the violation and contact an attorney. Not only is this a violation of your automatic stay, but it likely also violates the Fair Debt Collection Practices Act (FDCPA). This is a law that regulates how third-party debt collectors can interact with consumers. As such, if the violation also constitutes harassment, you can pursue an FDCPA claim against the collector. Common prohibited behaviors include, but are not limited to, the following:
- Using vulgar or threatening language
- Misrepresenting their status as a debt collector
- Threatening to have you arrested or sue you
- Talking to others about your debt
- Repeatedly calling you
- Calling before 8 a.m. or after 9 p.m.
As you can see, a violation of the automatic stay may also overlap with an FDCPA violation. It’s in your best interest to connect with an experienced attorney who can help you fight for your rights as a consumer. These violations could result in statutory damages. At Loker Law, APC, we understand how complicated these matters can be, which is why we are ready to assist you. Connect with our firm today to learn how our consumer attorneys can fight for you.
