As a Roselle bankruptcy attorney, I am often asked about the automatic stay. The automatic stay in a bankruptcy case is what gives the bankruptcy law an opportunity for the debtor to be protected from all creditors pursuing them by suing the debtor for debts that the person has occurred and owed to the creditor. The automatic stay stops all collection efforts from any creditor. This automatic stay is iron and cannot be violated without first going into bankruptcy court and asking the bankruptcy court to stop the automatic stay. In some cases, the automatic stay will be stopped for routine things such as proceeding with a foreclosure and other things such as pursuing a debtor for a motor vehicle that the debtor is surrendering back to the creditor.
If the creditor violates the automatic stay and continues to try to collect the debt, that creditor can be sanctioned heavily for violating the automatic stay. Any communication effort at all to a debtor while the debtor is in bankruptcy no matter how innocent can be a violation of the automatic stay and as a result, the creditor can be sanctioned.
For more information about filing for bankruptcy and exploring your rights under Federal law, contact the law offices of David M. Siegel at (847) 520-8100.