In a recent bankruptcy case from the Middle District of Florida, bankruptcy judge Arthur Briskman fined Bank of America $12,500 for violating the bankruptcy automatic stay. The court found that Bank of America had called the bankruptcy debtor up to 38 times after the debtor had filed for bankruptcy. These calls to the debtor were to collect on the mortgage that he owed.
For those not familiar, as soon as a person filed for bankruptcy they are under the protection of the automatic stay. The automatic stay is a very powerful thing. It is basically an injunction against your creditors to immediately stop any and all collections activites against you. This means that they cannot call, send mail, or pursue ANY type of collections activities. Often times the automatic stay is used to stop impending foreclosures, repossessions, garnishments and levies.
When a creditor violates the automatic stay they violate Federal Law. The violation can result in fines and damages awarded to the debtor. The damages can be for emotional distress and punitives damages-money awarded in essence to punish the offender.
If you have filed for bankruptcy and continue to be harassed by your creditors, contact an Orange County Bankruptcy Attorney at 1st California Law to see how we can help!