Filing for bankruptcy in Maryland or Washington D.C. triggers the automatic stay. Creditors are forbidden from taking any action against you including repossessions, foreclosures, collection calls or written correspondence. Of particular importance is that all State collection lawsuits are put on hold (and ultimately dismissed when you receive your discharge). Under section 362 of the bankruptcy code, violation of the automatic stay provides for damages should a creditor continue to harass a consumer after he or she files for bankruptcy.
If you find yourself being harassed by creditors after you file contact me immediately and I will send a warning letter to the offending party. If the calls continue, we’ll take action in Court. In most cases, the automatic stay is the beginning of the end for creditors and my office is committed to seeing the stay enforced.
{ 0 comments… add one now }