Hello, and thank you for contacting Just Answer.
First, no, that is not true, once a chapter 7 petition is filed, an automatic stay goes in to effect for at least 45 days, stopping any collection of any debts from that date forward. The pay period is irrelevant to the equation, and failure to return the funds arguably raises civil liability for the debt collector both under the federal bankruptcy code, and the Fair Debt Collection Practices Act.
Now, anything collected prior to the date of the filing of the petition likely cannot be recovered, a collector has the right to collect before the filing date, which initiates the automatic stay.
So how do i get the money back?
11 USC 362 is the law about an automatic stay and can be found at:
The first step is generally to raise the law with the collector. If the collector, after you have cited the law, still refuses to return the money, you would arguably have to file a motion to have the collector held in contempt of the automatic stay issued by the bankruptcy court, file a suit against the collector under the FDCPA, or both.
Ok. Thank you!
You are welcome. I would strongly encourage you to seek the assistance of an attorney in addressing the issue. For a referral to an attorney, the Oregon State Bar has a referral service at:
I think I am going to do that
I think that would be wise. I appreciate the opportunity to chat with you. Please remember to RATE my answer AT LEAST 3 out of 5 so that I can receive credit for my work.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).