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Help, a creditor took money from my bank account after I filed for bankruptcy!

Posted on Sep 23, 2013 in Bankruptcy, Chapter 13, Chapter 7, Consumer Law, Wisconsin

Sam and Sally were victims of payday loans in Wisconsin.  The payday lenders were sucking large sums of money from their bank accounts every month. Lakelaw filed bankruptcy for Sam and Sally to stop the payday lenders. The automatic stay for bankruptcy in Wisconsin serves as a legal stop sign.  If a creditor tries to collect a debt even after we file a chapter 7 case in Wisconsin or even a chapter 13 case in Wisconsin, Lakelaw can sue that creditor for damages and attorneys fees to make them stop.

Bankruptcy stops payday lenders from collecting.  Bankruptcy stops payday lenders from taking money from peoples’ bank accounts.  But Sam and Sally’s payday lenders ignored the law.  They took money from Sam and Sally’s bank account after Lakelaw filed their bankruptcy.  Sam and Sally got hit with bank fees and overdraft charges.

Lakelaw informs creditors after a bankruptcy filing our client has filed a bankruptcy case, whether under chapter 7 or chapter 13.  This way, the creditor can’t complain they didn’t know about the case.  If they keep collecting anyway, it’s a willful violation of the automatic stay.  We also tell our clients to stop any automated withdrawals from their bank account.  We frequently tell our clients to close their bank accounts and open new ones so the creditors can’t get their hands on their money.

Most honest creditors stop collection right after we file the bankruptcy case.  But Lakelaw will sue and collect from those who insist on doing the wrong thing,

Creditors with no notice of filings might not be willingly ignoring the bankruptcy stay when they act, but if they get notice and still refuse to correct their behavior, a court can rule they were liable for their actions after getting the notice.

Lakelaw helps our clients recover money taken from them after filing, even if it means extra time on the phones and fax lines.  It’s part of completely representing our clients from start to finish and providing them with true debt relief.

Lakelaw also protects people after bankruptcy taking advantage of consumer protection laws such the Fair Debt Collection Practices Act, the Telephone Collection Practices Act and by enforcing the discharge injunction.  After a bankruptcy is complete,  creditors can’t collect on claims which arose before the bankruptcy. Lakelaw insists that such creditors stop.  And if they don’t we sue them and collect for our clients.

We also help our clients restore credit after bankruptcy by reviewing their credit reports and correcting errors.

When facing financial crisis, whether in Wisconsin or Illinois, let Lakelaw fight for you.  Remember, Lakelaw is your financial life-saver ™.  We help people with bankruptcy and foreclosure in Illinois and Wisconsin.

 

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