Legal Question in Bankruptcy in California

Penalties for Violating Automatic Stay

I filed a Chapter 7 case last fall before the new laws took effect. At the time I had a pending dispute of a charge on my Visa check card. I included the disputed debt among those I was seeking to discharge and listed the creditor along with all the others. After the creditor was notified of my filing, it pressed its claim with my bank and was able to get the disputed funds from my checking account. What's more, it has continued to demand payment and to report the debt as unpaid. The company recently hired a law firm to collect the money that it already has. It never challenged my discharge in the bankruptcy court.

What sort of penalties is the creditor facing for these actions? If the creditor has to pay penalties in addition to making me whole, will they be paid to me or to the court? Will it have to pay my attorney fees if I complain to the bankruptcy court? The disputed amount is nontrivial, but it would only cover about three hours of my attorney's time. Besides, I feel I should be able to keep the money and not have to pay for my creditor's improper actions.


Asked on 8/27/06, 7:44 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: Penalties for Violating Automatic Stay

A letter from a lawyer and some phone calls should clear the matter up. Or, you might send a copy of the notice of discharge, the page from your schedule F that includes the debt, to the creditor's lawyer, and tell them you want the money restored, as well. See what they say.

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Answered on 8/27/06, 9:16 pm


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