When a person files bankruptcy, the court orders the automatic stay to go into effect. The automatic stay prohibits creditors from attempting to collect a debt from the debtor. If a creditor attempts to collect a debt from a debtor after he or she has filed for bankruptcy, the debtor should give the creditor his or her bankruptcy case number. The debtor should also make clear records of any time a creditor calls and keep all letters a creditor sends after the filing date. If the creditor persists on collecting the debt, the debtor should give the creditor's information to his or her attorney. Any creditor who violates the automatic stay may be held in contempt of court and may be liable to the debtor in damages.
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What if a creditor attempts to collect a debt included in a bankruptcy?
Submitted by Site Admin on Fri, 04/30/2010 - 4:17pm