Bankruptcy Law Questions? Ask a Bankruptcy Lawyer Now.
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Once you file a bankruptcy all garnishments and collections efforts have to stop and any monet taken must be returned in most cases.
you should contact your bank, and the creditor as well, they may ask for a copy of the petition filed and the case number XXXXX well.
Yes start with the bank, notify them of the case number, but the law allows all funds taken 90 days prior to be returned, so you may want to advise the creditor, he will be reciving notice of the filing anyway within a few days.
Once the money is given back it is part of the bankruptcy estate and unless it is exempted it would go into paying your creditors.
The bank would know, in fact they willl know that a violation of the Federal automatic stay cn result in fines from the federal courts.
The filing of a bankruptcy case, under any chapter of the Bankruptcy Code, triggers an injunction against the continuance of any action by any creditor against the debtor or the debtor's property. 11 U.S.C. 362.
The automatic stay prohibits
The automatic stay remains in effect until
every state has their own exemptions,
If you are in Mass
Go to the above link it has the 2011 new bankruptcy exemptions.
If you will be recieving a significant amount such as $10,000 or more, I would dismiss the bankruptcy and use the money for yourself, and then consider a bankruptcy later, the stay will remain for a few months.
If you have any further questions please do not hesitate to ask.
yes, but wait till the amount is given back to you, and do not attend the chapter 7 341 hearing in most cases the trustee would dismiss the case in three months or longer.
The lawsuits would not be able to start until after the three month window, when the case is actually dismissed.
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