Legal Question in Bankruptcy in California

Stoping payment on electronic debits on creditors

My paralegal said toput stop payments on electronic debits that come into my checking account from payday advance companies. I have done so, but am I really safe? I heard from someone that they can try and obtain their money by changing the increments they take out. They should receive their letters of stay by next week, but in the meantime I've removed all my funds from my checking account. Am I doing the right thing. I'm k ind of worried that I'm going to accrue all these overdraft charges or return item fees. (Actually only 5), but still... Should I notify these companies before they recceive their letters of stay? Thanks for your help.


Asked on 3/31/05, 11:29 am

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

Re: Stoping payment on electronic debits on creditors

If you have filed bankruptcy, all debt collection activities are automatically stayed. Therefore, charges incurred as a result of your failure to repay payday loans are related to your having filed bankruptcy and would be uncollectable if you receive your BK discharge.

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Answered on 3/31/05, 6:49 pm


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