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THE AUTOMATIC STAY

When you file a Chapter 7 or 13 petition and pay the filing fee, the "Automatic Stay" provision of the federal bankruptcy code takes effect. The automatic stay provides instant relief by stopping creditor's harassing telephone calls and mail, as well as their actions to lien or obtain a judgment. Even though it is prohibited by law, many creditors will continue to contact debtors. Also, due to the recent flood of bankruptcy filings, creditors may simply have not recorded a filing and will continue to contact the debtor.

Frequently, creditors will persist even when told by the debtor that he or she has filed bankruptcy. The information they will want is as follows:

• the type of bankruptcy filed
• the date it was filed
• the docket or case number
• the name and telephone number of the attorney handling your case

Still, the automatic stay provision of the bankruptcy code is very powerful and states that, " . . .upon the filing of a petition, any contact with the debtor shall cease ..." Contacting a debtor who is protected under this provision is a violation of the automatic stay provision and is considered to be in contempt of court. Debtors may sue creditors for violating their rights under this provision. Such prosecution may result in assessment of fines, awards for punitive damages, and payment of attorney's fees.

You should document any contact with you by creditors, written or oral. This documentation can be used against creditors who simply refuse to stop calling you. And I guarantee that there will be at least one who feels that the automatic stay provision doesn't apply to them.

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