Skip to Content Top
Violations of The Automatic Stay

Violations of the Automatic Stay

The Bankruptcy Code is quite clear. As soon as your bankruptcy petition is filed in U.S. Bankruptcy Court, you are protected by the federal government. Creditors can no longer touch your assets. They can't even contact you.

Some creditors and third parties try to avoid these rules. They prey on debtors through threats, deception and shame in a last-ditch effort to collect on debts. If creditors or bill collectors violate the rules, you can initiate adversary proceedings.

Creditor Violations of the Automatic Stay of Bankruptcy

The automatic stay is immediately invoked upon receipt of your bankruptcy filing. Each creditor listed in your petition will be notified that you and your assets are off limits while your case is pending. Any collection efforts must stop. Any legal actions must stop. Any contact (phone, mail, e-mail, etc.) is forbidden.

  • Common violations of the automatic stay include:
  • Harassing phone calls to your home, family members or place of work
  • Verbal threats of legal action or physical harm
  • Swearing and abusive language
  • Invoices, collection letters and demands for payment
  • Filing lawsuits and injunctions
  • Attempts to garnish wages or bank accounts
  • Attempts to collect debts that have been discharged by the Bankruptcy Court
  • Attempts to collect on debts previously paid or settled
  • Negative reports to credit reporting agencies for debts discharged in bankruptcy or listed in a pending case

An adversary proceeding is a trial within your bankruptcy case. You can initiate adversary proceedings against a creditor or third party. The judge or trustee can also bring adversary proceedings against creditors if the court learns of violations.

After your testimony, the creditor or agent will be given an opportunity to respond to the alleged violation. If the creditor is found in violation of the automatic stay, the court can award your actual damages in addition to attorney fees and statutory penalties.

In the same action, you can seek monetary damages under the federal Fair Debt Collection Practices Act. The FDCPA applies to behavior of creditors prior to bankruptcy and after you have filed. Offenders can be fined up to $1,000 for each violation. You may also be entitled to recover actual and punitive damages, depending on the case.

An Example of Creditor Harassment

Bill and Melinda* have received abusive phone calls and e-mails from a business owner who claims they reneged on a service contract. After they filed for bankruptcy, the e-mails and phone calls continued, and a demand letter was sent to their home address. The creditor also made phone calls to Bill's workplace. The collection agent told Bill's assistant that Bill was a bankrupt and a spendthrift.

Both Bill and Melinda were unable to sleep as a result of the stress. Bill and Melinda's attorney filed an adversarial proceeding against the creditor, alleging violations of the automatic stay and the FDCPA. After a hearing, the judge awards Bill and Melinda money damages for the violation of the automatic stay and statutory damages for the creditor's FDCPA violations.

*Bill and Melinda are fictitious characters created to illustrate bankruptcy scenarios.

Contact Atlas Consumer Law online or call (312) 313-1613 about creditors who violate your bankruptcy rights. We will take aggressive action and represent you in adversary proceedings and FDCPA claims.

Hear From Our Satisfied Clients

Reviews & Testimonials

At Atlas Consumer Law, your satisfaction is our priority! See for yourself what our clients have to say about working with us.

    "I was so stressed out, found Atlas Consumer Law & gave them a call!"

    I had absolutely NO exceptions going forward with my lawsuit against a company that harassed me for payment! I was at the ...

    - Pam S.
    "So Helpful & Responsive!"

    Everyone at Atlas was so willing to help and so responsive. I'm so grateful for the work they put in on my case! Would highly ...

    - Stephanie M.
    "Results Fast!"

    THEY GOT RESULTS FAST FAST FAST!!!

    - Jake B.
    "Can Do Attitude All the Way!"

    Atlas consumer Law is amazing and they have the CAN DO attitude and will do anything to get the job done.. I highly recommend ...

    - Donnie P.
    "Thank you for educating me about my rights as a consumer!"

    The Atlas Consumer Law Group is Awesome. They promptly took care of my issue with a creditor who tried to ignore my rights as ...

    - Belinda W.
    "Absolutely Amazing!"

    I am absolutely AMAZED at this law group! I started a case in March and got it solved in early May! The debt collector was ...

    - Aline G.
    "Atlas Consumer Law Goes Above & Beyond!"

    Atlas helped us within 6 months more or less and they were an awesome team. I would definitely recommend Atlas Consumer Law ...

    - Llyod G.
    "Atlas Consumer Law is on Your Side!"

    When you need the law on you side call Atlas!

    - Arlene B.

Contact Us Today!

Talk to the leading law firm in the country about your rights for free! Fill out the form below or give us a call at (312) 313-1613 and we would be happy to give you the answers you need to make informed decisions for yourself and your family.

  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please make a selection.
  • Please enter a message.
    • Please read and agree to disclaimer.