Legal Question in Bankruptcy in California

Can a Creditor keep collecting once bankruptcy filed?

I filed a chapter 7 bankruptcy in November 2000. I included a loan made thru my credit union. My employer continued to deduct monies from my paycheck and the credit union applied them to the loan. Since the credit union was informed of the bankruptcy shouldn't they have stopped applying monies to the loan? The bankruptcy was discharged in April 2001. My credit Union now states I should have notified my employer to stop sending them monies. Am I owed a refund for the monies sent after the bankruptcy was filed?


Asked on 7/13/01, 6:30 pm

1 Answer from Attorneys
Mark Markus Law Office of Mark J. Markus

Re: Can a Creditor keep collecting once bankruptcy filed?

The credit union, if they were notified of the bankruptcy, violated the automatic stay by continuing to collect. It is true, you definitely should have contacted your employer (or your attorney should have), but that doesn't change anything. If it was an unsecured loan, then you should be entitled to return of any post bankruptcy money taken from your paycheck. If you desire representation on this, feel free to give me a call.

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Answered on 7/13/01, 8:26 pm


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