Consumer Protection Law
Consumer Protection Law Questions? Ask a Lawyer Now.
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:
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