When you file bankruptcy and receive your case number a “stay” is put in place which prohibits the creditors from initiating contacting with you by any means and for any reason.

The “violation of stay” occurs when a creditor attempts to contact you via phone, letter, collection statement or any other means after your completed your bankruptcy filing. Bankruptcy is governed by Title 11 of the Federal code.  More specifically, 11 United States Code, section 362 governs violation of the bankruptcy stay and when a creditor violates the stay, they violate this section of the code.

A violation of the stay can also happen when a creditor contacts you after the Court issues you the discharge order. Once you receive a discharge on debt that you listed in your bankruptcy, that specific debt no longer exists. 11 U.S.C 524 of the bankruptcy code governs the period after you receive your discharge order from the court. When a creditor violates that order by contacting you regarding a discharged debt by any means they are violating 11 U.S.C.  524  and 11 U.S.C.  727.

11 U.S.C. 727 operates as an order of discharge given to you by the Federal Bankruptcy Court.

When a creditor violates this they are in contempt of the Bankruptcy Court as they disobeyed a direct order from the court, namely the discharge order.

So to recap: if a creditor contacts you by any means after you file bankruptcy and/or you receive your bankruptcy discharge the creditor is in violation and you may be liable for a cash payout.

Do not hesitate to contact us if you feel that your rights were violated.