Bankruptcy Automatic Stay Protections

Summary

Filing for bankruptcy triggers an automatic stay, preventing creditors from pursuing collection activities, including lawsuits and judgments. If a creditor violates this stay in Albany County, the debtor can file a motion with the bankruptcy court, potentially leading to financial penalties and sanctions against the creditor. The severity and frequency of the violations influence the penalties, which are determined by the court. Consulting a local bankruptcy attorney is advisable for precise guidance.

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What happens if a creditor pursues a judgment against the debtor during the bankruptcy is still in place?
If a creditor pursues a judgment while an automatic stay from bankruptcy is in place, it typically violates the law. The debtor may:
- Seek damages for the violation.
- Request the court to nullify the judgment.
Please provide your location for more specific information.
Albany County
In Albany County, if a creditor violates the automatic stay:
- You can file a motion with the bankruptcy court.
- The court may sanction the creditor.
You should consult with a local bankruptcy attorney for precise advice.
How does the creditor get sanctioned in this matter?
If a creditor violates the automatic stay in Albany County:
- The court may impose financial penalties.
- The creditor may have to pay debtor's attorney fees.
- Serious violations could lead to contempt of court charges.
How much in financial penalties can I request?
The amount you can request in financial penalties for a creditor's violation of the automatic stay largely depends on the circumstances, such as the severity and frequency of violations. Exact amounts are usually determined by the court. Consult with a bankruptcy attorney for more precise advice.