Creditor Violations of the Automatic Stay in Bankruptcy

When you file bankruptcy, an automatic stay prohibits creditors from continuing to collect debts, including filing lawsuits, foreclosures, or other actions. This includes collection notice and phone calls, too.

If the creditor violates the automatic stay, you can sue the creditor for the violation. The Bankruptcy Court can even award damages, including attorneys fees. If the violation is willful, the Court can award punitive damages.