State Consumer Protection Laws
The automatic stay in bankruptcy
One of the most important features of your bankruptcy case is the “automatic stay”. Read here for more information about the automatic stay. This means that when you file your bankruptcy case, all credit and collection activity must stop. Wage garnishments must stop. Collection efforts must stop. Collection phone calls must stop. Calls to your family and employers must stoop. Lawsuits to collect money must stop. All you have to do is to tell us the proper name and address of every one of your creditors, no matter how big or small. Then, when we file your bankruptcy case, your creditors get notice. Once your creditors get notice, they must stop bothering you immediately.
If they continue to bother you in any way, tell us right away. We can sue that creditor for damages and recover attorney’s fees we incur in making them stop. And we will do that at absolutely no expense to you. Read more here.
A creditor may seek to modify the automatic stay. A mortgage lender might want to continue a foreclosure. An auto finance company might want to repossess a car if you haven’t made payments. Even if one or two creditors can continue their claims, the automatic stay protects you against the rest until you get your discharge in bankruptcy.
The bankruptcy discharge
The bankruptcy discharge is the most important benefit you get from your bankruptcy case. The bankruptcy discharge wipes out your creditors’ ability to collect money from you from most of your debts from before the bankruptcy. It does not wipe out recent taxes or debts for alimony or child support. It does not eliminate mortgages or liens on your car.
The bankruptcy discharge injunction
The bankruptcy discharge is backed by an injunction – a legal stop sign. The discharge injunction forbids any creditor from doing anything to collect any of your debts discharged in bankruptcy.
We will show you how to protect your rights even after your bankruptcy case is over. We will do this at no out-of-pocket cost to you.
If any creditor violates the discharge, they are denying your right to a fresh start. We have the right to sue them in the bankruptcy court and to recover damages for you. We also will recover legal fees from them. We will be sure that your credit records are complete and up to date after you get your bankruptcy discharge so that you get all the benefits of a fresh start in bankruptcy.