Violation of Stay-local credit union

[ccsjoe]

We filed CH7 on 8/27. According to PACER, notices went out to creditors on 9/1; some of these being electronic notices to email addresses on file with the court. One of those was a local credit union. They received notice of filing on 9/1 and canceled out online account access same day, 9/1. I received a collections letter from the credit union dated 9/1 (ok, let it slide) and another received 2 days ago (9/10) dated 9/3, clearly after they had received notice and suspended account access, so they were clearly informed of our filing by the time they sent the 9/3 collections letter.

How do I go after them? Is there a template or something someone can post a link to so I can get some ideas?

Thank you

[ryan]

Y'know I see others posting about this sort of thing, but I have to wonder....what is gained by "going after them?"

Is your goal to stop further collection letters in the mail, or something else? ...are there fines or something you hope to have assessed against them? I have no opinion here, but just trying to see what the effort will bring you.

[ccsjoe]

Ryan, trying to determine feasibility of collecting some $$$ from them. I believe I read that each violation is subject to up to $1,000 in fines. The purpose of the post is to find source materials to educate myself and determine if I can go and get me some spare change.

[Pandora]

ccsjoe -

I hear ya! We are in the exact same situation - except we are 6 months from the time we filed and our county treasurer keeps sending us bills. The first 2 times it happened, we called them and told them "hey..you're violating...you know we filed..etc etc etc" - provided case #, attorney, etc - twice. They claimed they never received notice (hmmm..well it was mailed directly to you...2 times snail mail - 1 time electronically). Okay... so here comes end of May - 3rd billing... we notify our lawyer - he sends out notice stating violation of stay, next time they do it - the fines will be imposed and we're going to court. Guess what arrived last week? Yep - another bill, except this time they sent it to collections..and added tons of penalities and interest!

Called our lawyer said enough was enough - they are blatently violating and to file suit for us. He agreed.... Dont know if we're going for all 4 violations or just the last 2. According to our plan, our lawyer states no fees to file suit - and if we win we split 50/50 (we will win it). I could use a grand in my pocket for sure!

[BigJohn]

Creditors violate the automatic stay because nobody enforces the law.

Besides, when people get behind on their bills, they are looked upon as 'dirty trash' and some people believe what comes are way is only a little bit of what we deserve.

[ccsjoe]

Anybody have any idea on the feasibility of my original question/scenario above? Thank you

[treehugger1]

I would suggest you first build a rock-solid trail. Why not send them a return-receipt letter with your case number. You could even send them a copy showing Pacer shows notices were sent. If they still violate, then I would hope your BK attorney would help you act against them. Just an opinion.

[ccsjoe]

Appreciate the opinion treehugger. I think it's pretty sound, except that I would seek to go at them without my attorney. Pretty sure I can wrangle at least a settlement out of it.

[tay666]

Appreciate the opinion treehugger. I think it's pretty sound, except that I would seek to go at them without my attorney. Pretty sure I can wrangle at least a settlement out of it.

Why not use your lawyer?
From what I understand it would be $1000 fine + legal fees.
Or is that for FDCP violations?

[ccsjoe]

Because I want to try and do it myself tay. No specific reason. Just need someone to point me towards information so I can research.

[flyinbroke]

Big huge mistake going in with dollar signs in your eyes. FDCPA is only 1000 dollars per action (not per violation) and offhand, I am thinking that you won't be able to "cash in" with a suit. You are getting debt excused with a 7, I just don't see them settling. People who do get settlements often have multiple violations to back it up. More than likely that 9/3 got crossed in the mail since these are pretty much boilerplated, and it was a holiday weekend so you got them late.

I think that once you file for BK and the attorney tells them, you should tell the attorney to take care of it.

[ccsjoe]

flyinbroke, thank you. This is somewhat of what I was looking for, i.e. is it feasible. You just said most people who do it have multiple violations to back up the violation and seek compensation for the action. So I might sit tight and wait. By the way, the 9/3 was mailed on 9/7 according to the postage mark on the envelope. But regardless, if I wanted to start some action or send a warning letter, is there a template somewhere I can take a look at or further legal information?

Thank you

[flyinbroke]

Personally, I would not send anything yet. If they will violate repeatedly, they will. Patience is a virtue and suing for violations is a marathon, not a sprint. (Sent three demand letters through a lawyer in mid June. One has completely blown off the lawyer and will go to court very soon. Another settled within a month and a third offered but was rejected back in July. Have not heard a peep.)

The post mark means that they probably wrote and dropped it in the CU mail drop on Friday, but since it was Labor Day weekend, it did not actually go out in the mail until Tuesday the 7th.