Recently, Sultana Law won a $10,000 sanction against Bank of America on behalf of a bankruptcy client when the lender continued to violate a federal court order to cease and desist all attempts to collect on a discharged debt. Under federal bankruptcy law, once a party files for bankruptcy with the bankruptcy court there is a mandatory pause on any collection activity. The legal term for this is “automatic stay.” What this means is, for the period of time the court is reviewing the bankruptcy case, creditors are not permitted to contact the debtor in an attempt to collect any debt included in the bankruptcy case.
If the debtor has filed for Chapter 7 bankruptcy, often called “Fresh Start” bankruptcy, with some exceptions, most debt may be discharged. Once the bankruptcy case is concluded and the debt is discharged, the court will rule the debtor no longer owes the debt and the creditor may never again pursue the debtor to collect the debt. In essence, most, if not all, of the debtor’s debt is wiped out, and he or she is given a fresh financial start—a clean slate. If the creditor attempts to collect a debt once it has been discharged by the bankruptcy court, the creditor is committing a federal offense and can be sanctioned by the court. Attempts to collect a debt can include calling the debtor, sending letters, e-mailing or contacting the debtor in any way.
Sultana Law handles both Chapter 7 “Fresh Start” bankruptcy cases, and Chapter 13 bankruptcy cases. Chapter 13 bankruptcy allows parties to restructure their debt and potentially modify loans to reach more reasonable and affordable terms. We are experienced in negotiating with and litigating against lender law firms, and are not intimidated by Big Banks.
Regardless of the reason for your circumstances, if you are facing financial hardship and are concerned about losing your home or your business, we encourage you to contact Sultana Law for a free consultation. It costs you absolutely nothing to meet with us to discuss your options. If you decide to hire us and we take your case, upon receipt of the initial retainer, we encourage you to begin forwarding all collection calls to our firm. This is an extra service we provide. If bankruptcy is an option for you, as soon as we file your case with the court, all collection calls must cease by order of the court. If we win your case, and your debt is discharged by the court, you may never be harassed by creditors again.
Call today to schedule your free consultation. Let us help you obtain the financial relief you need so you can begin rebuilding your future.