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St Louis Bankruptcy Lawyer: Can A Creditor Demand Money From Me After I File For Bankruptcy?

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No, they cannot. As soon as a St Louis bankruptcy is filed, the court institutes the “Automatic Stay,” which is like a wall of protection against all creditor activity (including a creditor contacting you demanding money on the account). Do some creditors violate this stay? Yes, they do. A brief description of what happens is given below:

When a Missouri bankruptcy is filed, every listed creditor will receive notification. This notification from the court will provide the creditor of its rights, and more importantly, of your rights as the Bankruptcy Debtor. Once the stay is in effect, all creditor activity must cease immediately. This would obviously include demands for payment, but also all forms of communication (phone calls, emails, and letters), all legal activity (wage garnishments, bank levies, and lawsuits), or any other sort of activity that includes trying get money out of you.

And depending on which chapter of bk you filed, the creditor will be handled through the Bankruptcy Court. For instance, if you file a St Louis Chapter 7, all unsecured creditors (including credit cards, medical bills, payday loans, etc.) are knocked out. If you file a St Louis Chapter 13, it is possible that some of the unsecured creditors will get paid back over a period of years (with the remaining balances discharged by the court).

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This automatic stay that the Bankruptcy Court imposes is pretty strong (as you can see). But every once and awhile, you’ll see a creditor who disregards the stay, and will in fact continue collection activity. When this happens it is a violation of your rights. And the court provides certain remedies for such a violation (including a return of any funds taken after the filing of the bankruptcy, punitive and actual damages, and attorney fees paid for by the offending creditor).

So if you have filed a bankruptcy, and you believe that a creditor has in fact violated the Automatic Stay, you should contact your attorney immediately!! He or she will know exactly what to do in this set of circumstances.

The affordable St. Louis bankruptcy attorneys at Brinkman & Alter, LLC have been saving and protecting people’s assets for years. Our goal is to make sure that you keep the assets and property you want, discharge the debts that you want to get rid of, and do it all at an affordable cost to you. All phone conversations and office consultations are free of charge.