Attempted collections during bankruptcy

[ihatearizona]

What is the name of your state? Arizona

We filed bankruptcy on 6/10/04. Creditors meeting 07/23/04. Last day to object 09/21/04. Discharge SOON!

What do you do if a creditor included in the bankruptcy continues to disregard the fact that you are protected under the automatic stay of the bankruptcy (Chpt 7)?

I have a collection agency (Arrow Financial) that continues to send me demand letters. The latest one even included information on contacting Ameriquest to request a loan on my home so that I could pay them back!!!

On the date we filed I sent them a letter stating that we had filed for bankruptcy. On June 18th the bankruptcy court sent out the Notice of Chapter 7 Bankruptcy Case notices. About 2 weeks after that we received another demand letter. I in turn sent them a copy of the court Notice of Bankruptcy along with a copy of their own letter thinking this would settle the matter.

Today I received yet another notice (as mentioned above). I am going to yet again send them a copy of their letter with our copy of the Notice of Bankruptcy from the court.

Other than this, what can I do to stop them from violating the stay (and soon, the discharge of debts)?

 

[Ladynred]

No, do NOT send any letters to Arrow yourself. Give these demand letters to your Attorney and let him handle it - which is what you should have done in the first place. Arrow is in serious violation of the BK law and violating the automatic stay - they can be seriously slapped by the BK court for this action and they damn will know it. Get your lawyer to stop them or take the slimeballs to court for Contempt for violations of the BK law.

 

[ihatearizona]

We did not use a BK lawyer. We filed Pro Se.

Is there a form I can download to notify the bankruptcy court of their violations? Or, should I just inform our trustee?

 

[Ladynred]

Ok, different story, gues you'll have to write the letter after all

You need to once again state the bankruptcy case number, which BK district you're in, and the filing date of your case. You need to remind them that they are in violation of the automatic stay as per TITLE 11 CHAPTER 3 SUBCHAPTER IV, Sec. 362 (a) (6) ..

(a) Except as provided in subsection (b) of this section, a petition filed under section 301, 302, or 303 of this title, or an application filed under section 5(a)(3) of the Securities Investor Protection Act of 1970, operates as a stay, applicable to all entities, of -

(6)any act to collect, assess, or recover a claim against the debtor that arose before the commencement of the case under this title;

of US bankruptcy Code, on not 1 count, but xx counts (how many letters, calls, etc. ?). If they do not immediately cease and desist ALL collection activities, you will file a Motion for Contempt and Request for Sanctions with the BK court - and they can tell the BK judge why they are breaking federal law !!!

A sample Motion for Contempt can be found here:
http://lawyerassistant.com/freeforms/

You'll have to edit it to fit your particular situation, but the format is right.

I suggest you fill it out and attach a copy of it to your letter to let them know that you're not screwing around. If they do NOT stop, then go thru with it. You can mention it to the Trustee, but I'm not sure there's anything he/she can do since you're pro se.

Send it certified, RRR and keep copies.

 

[ihatearizona]

Lady:

Thank you for the great advice!