Are Debt Collectors In New Jersey Following The Law After A Debtor Files For Bankruptcy?

When a debtor files for bankruptcy an invisible shield comes down around them. This shield is referred to in the law as the automatic stay, pursuant to 11 U.S.C.  s 362.   The automatic stay protects the debtor from creditors during the pendency of his bankruptcy case.  The purpose of the automatic stay is to give the debtor some breathing room and time to reorganize his affairs.

Once the bankruptcy case is completed the debtor receives a discharge and pursuant to 11 U.S.C. s 524 the debtor’s creditors are prohibited from taking any action against him on a debt that is discharged.

The fact is that creditors, knowingly and purposely violate both the automatic stay and the discharge provisions.  Judges do not realize the extent to which the creditors violate the law on a regular basis.  If someone owes a debt, there is nothing wrong with trying to collect on the debt as long as it is done within the confines of the law.

If a creditor contacts after you after filing for bankruptcy please be sure to                                                                                                                consult with your attorney.  Both the Bankruptcy Code and Fair Debt Collection Practices Act (FDCPA) are laws, that when working properly, help protect the consumer.

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