Violations of the Automatic Stay in Utah Bankruptcy

Stop! Automatic Stay in Place

When filing bankruptcy in Utah there is an automatic stay that goes into effect immediately upon filing. This stay prohibits creditors from attempting to collect debt, including garnishments, foreclosures, repossessions, or even phone calls & letters. Even though the automatic stay is immediate, creditors don't always get notice of the bankruptcy right away, the court mails notice out but it can take a week or more before creditors receive the notice from the court. 

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Lack of Notice is not an Excuse in Utah Bankruptcy

However, in Utah lack of notice is not an excuse, it is expected that creditors will do their due diligence before making collection efforts, and find out for themselves if a debtor has filed bankruptcy. Bankruptcies are public records, so it is very easy for a creditor to determine if a debtor has filed bankruptcy. Most of the time big lenders, like credit card companies, do this, but often times smaller creditors do not. But whether it is a small company or a big one, a violation of the automatic stay is illegal and there are penalties in place for when creditors violate the stay.

Utah Bankruptcy Provides Legal Relief

Bankruptcy is a legal relief provided by the federal and state governments. There are very strict rules that creditors must follow and you as the debtor have the right to enforce these rules. There are some exceptions, such as multiple bankruptcy filings, but usually when filing bankruptcy the automatic stay is, well, automatic.

If a creditor attempts to collect a debt after the stay has been imposed, contact Pearson Law Firm, your Utah bankruptcy attorney has experience in enforcing the automatic stay, and will no exactly what to do if the stay is violated, usually at no cost to you.  Call for a free consultation, 801-888-0991.