Automatic Stay Violation Question

[navvet8992]

We just filed chapter 7 on 1/11/10 and are continuing to get bills from American Express. They were included in the matrix but keep sending us demands for full payment. Our attorney sent them a warning letter to stop contacting us. 2 days ago i get another letter from a collection agency working for AMEx. I forwarded this to my attorney and he sent them a letter. This one was more intense stating that they were in violation of the automatic stay and the next violation would result in sanctions being brought by his firm. Is there anything else that can be done? Can we collect punitive damages if they keep contacting us? Thanks in advance for your help.

[viking64]

We just filed chapter 7 on 1/11/10 and are continuing to get bills from American Express. They were included in the matrix but keep sending us demands for full payment. Our attorney sent them a warning letter to stop contacting us. 2 days ago i get another letter from a collection agency working for AMEx. I forwarded this to my attorney and he sent them a letter. This one was more intense stating that they were in violation of the automatic stay and the next violation would result in sanctions being brought by his firm. Is there anything else that can be done? Can we collect punitive damages if they keep contacting us? Thanks in advance for your help.

My attorney said I might get bills up to one month after filing - sometimes things are just in the system and not easily stopped. You can call them and give them your case number, or you can just ride it out and let your attorney know if they've done anything else. Chances are the latest letter will do the trick, though.

I did have a stay violation - Dell kept taking money out of my checking account on an auto-debit even though I had notified them to stop and they had definitely received notice of filing (had already updated my credit report). It took two months and two letters to get them to stop, and another month to have funds returned.

You could probably push for sanctions, but I'm betting AmEx just screwed up. Collection Agency might be fun to play hardball with, though, if they contact you again and your attorney is willing to go after them without charging more money. They certainly shouldn't be a threat to you because of the Stay.

I figure if I'm BK'ing a creditor, I can cut them a little slack on what is in all likelihood an administrative error as long as they do make it good.

[iv65536]

As far as the attorney fees are concerned, I believe your attorney can get an order directing the creditor to pay your reasonable attorney fees.

[BKDefender]

navvet8992: stay and discharge violations are like the 'dog bite rule' - the dog gets one bite, is declared a dangerous animal, and a 2nd bite can get the dog destroyed or the owner liable for intentional damage and possible criminal penalties.

AMEX gets one notice to you, one letter from your attorney telling them to stop, and any followup letter is intentional and sanctionable. That's my rule.

--William

[kornellred]

As BKDefender points out, most infractions of the FDCPA are overlooked the first time - most likely the timing was off and collection efforts were in the system before the stay was formally acknowledged. Further collection efforts after the stay is in effect is not to be tolerated and creditors know this.

[BigFerb]

AMEX gets one notice to you, one letter from your attorney telling them to stop, and any followup letter is intentional and sanctionable. That's my rule.

--William

How about withdrawing automatic payments after filing (CH 13) for 18 months and counting? Aside from the original notice, I've e-mailed, called, visited a branch, etc.

I stopped depositing into that account and just let it go negative; now they're taking money from another account to cover that account. I just can't stop this fiscal leak.

I'm guessing I have a good shot at getting attorney's fees. Any thoughts about likelihood of punitives?

I really don't want to have to litigate. I'm busy enough trying to keep up with my plan payments. I wonder how many just give up and pay when a bank blatantly and continually violates an automatic stay.

Thanks for any thoughts.