Remedies to try to collect the debts included in bankruptcy

One of the major advantages of bankruptcy is to stop calls, letters, and other activities of debt collectors. This includes ordinances, judgments and foreclosures. When creditors and collectors do not stop collection efforts, consumers can make use of additional courts. This article describes some of the fundamental protections of debtors who are harassed in the bills included in bankruptcy.

The violation ofautomatic suspension

When any person, company, institution or other file of the initial bankruptcy petition, the court of the bankruptcy court enters an automatic suspension. This is essentially a "safe haven" for the debtor to catch their breath and prepare for the rest of bankruptcy. During the automatic stay, all collection efforts of any kind are prohibited.

The Bankruptcy Code establishes a private cause of action for a person injured by a breach of the voluntaryautomatic stay. The injured party is entitled to recover "actual damages, including court costs and attorney fees. An award of actual damages requires a showing of injury or damage resulting from acts in violation of the stay. Some examples of acts that have repeatedly affirmed an award for actual damages subject to the confiscation of vehicles, the closure of a debtor of a property lease by filing a lawsuit against a debtor, and continued engagement with the collection of debts beforebankruptcy. Punitive damages are awarded when creditors collection activities are particularly striking.

Violation of order for discharge

The order issued by the court's discharge of the bankruptcy court is a decision that will free the debtor from personal liability for the debts specified. The download is a permanent measure or an order prohibiting the debtor's creditors from taking any form of action for payment of debts discharged, including the depositlawsuits, garnish wages or bank accounts, and other collection efforts with the debtor, such as telephone calls, letters and personal contacts.

The debtor is beset by debts discharged after entry of final discharge may bring a contempt proceeding against the creditor violated. This is an adversary proceeding in bankruptcy court, is provided as a proposal for a contempt order, or an opponent's action. The judge in the bankruptcy court may award to an injuredindividual "real damage", including court costs and attorney fees. In his case, the creditor may be forced to pay fines or penalties.

Fair Debt Collection Practices Debt

In most courts, it is possible for a consumer to claim Practices Act (FDCPA) Fair Debt Collection case when a creditor attempts to collect a debt discharged in bankruptcy. There are many itemson the provisions of the FDCPA, but overall, that federal law prohibits certain practices regarding the collection of bills that the debtor should not be. Under the FDCPA, consumers can claim damages, statutory damages and attorneys fees.

The exception to this is Mura V. Wells Fargo, an opinion of the Court of Appeals for the Ninth Circuit Court of Appeals, which serves as binding precedent in California, Idaho, Montana, Nevada, Oregon, Washington, Alaska,Hawaii and Guam. That case held that the FDCPA was interrupted by the Bankruptcy Code, and that debtors are limited to seeking redress for violations of the order of discharge, as mentioned above.