Need to write a letter to a creditor? Has that creditor violated an automatic stay? Then you need a “Sample Letter To Creditor Violating Automatic Stay.” An automatic stay happens when you file for bankruptcy. It stops most creditors from trying to collect debts from you. If they ignore the stay, this letter can help.
Writing legal letters can be daunting. Do you need a template to get started? We understand this can be stressful. That’s why we’re here to help.
This article shares samples of this important letter. Use our samples to craft your own letter. We will provide you with a letter that can help you protect your rights. Let’s simplify this process together.
Sample Letter To Creditor Violating Automatic Stay
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Your Phone Number]
[Your Email Address]
[Date]
[Creditor’s Name]
[Creditor’s Address]
[Creditor’s City, State, Zip Code]
RE: Bankruptcy Case No. [Your Bankruptcy Case Number]
Account No. [Creditor’s Account Number]
Notice of Automatic Stay Violation
Dear [Creditor’s Name]:
This letter serves as formal notification that you are in violation of the automatic stay imposed under Section 362 of the United States Bankruptcy Code. I filed for bankruptcy under Chapter [Chapter Number] on [Date of Filing].
The automatic stay went into effect immediately upon the filing of my bankruptcy petition. Despite this, you have engaged in the following actions, which are in direct violation of the stay:
[Specifically describe the actions that violate the stay. For example: “Continued to send collection notices,” “Made phone calls demanding payment,” “Initiated or continued a lawsuit,” “Attempted to repossess property,” etc.]
These actions are prohibited under 11 U.S.C. § 362. I demand that you immediately cease all collection efforts and any other actions taken in violation of the automatic stay. This includes, but is not limited to, stopping all communication, terminating any pending lawsuits, and returning any property seized after the bankruptcy filing date.
Please be advised that continued violation of the automatic stay can result in sanctions, including monetary damages, attorney’s fees, and punitive damages, as provided by the Bankruptcy Code.
I request written confirmation within [Number] days that you have ceased all collection activities and that you acknowledge the automatic stay is in effect.
Sincerely,
[Your Signature]
How to Write Sample Letter To Creditor Violating Automatic Stay
Subject Line: Succinct and Implacable
The subject line should clearly communicate the letter’s essence. Open with precision; don’t equivocate. A strong subject line ensures immediate attention. Consider:
- Subject: Notice of Automatic Stay Violation – Account [Account Number]
Salutation: Formal Courteous Indignation
Even when dealing with a creditor potentially acting unscrupulously, maintain professional decorum. Begin with:
- Dear [Creditor Name] or Dear [Department Name]:
Avoid familiarity; your primary goal is to assert your rights with unwavering resolve.
Introduction: Unequivocal Assertion
The opening paragraph needs to be direct and unambiguous. Declare the bankruptcy filing and the automatic stay with authority. Do not mince words.
- “I am writing to inform you that I filed for bankruptcy under Chapter [Chapter Number] on [Date]. The bankruptcy case number is [Case Number] and was filed in the [Court Name and Location].”
- “As a consequence of this filing, an automatic stay under 11 U.S.C. § 362 is now in full effect, prohibiting any collection activities.”
Body Paragraph 1: Specifying the Infraction
Delineate precisely how the creditor has transgressed the automatic stay. Be meticulous in your description.
- “Your office violated the automatic stay by [describe the specific action, e.g., “sending a collection notice,” “making phone calls demanding payment,” or “initiating foreclosure proceedings”] on [Date] concerning account number [Account Number].”
- Attach copies of any pertinent documents as demonstrative evidence of the violation.
Body Paragraph 2: Consequences and Remonstrances
Articulate the potential ramifications of their actions and demand immediate cessation of further violations. A touch of menace can be efficacious.
- “Continued violation of the automatic stay may subject you to sanctions, including compensatory and punitive damages, as outlined under 11 U.S.C. § 362(k).”
- “I demand that you immediately cease all collection activities related to this debt. Confirm in writing within [Number] days that you have complied with this demand.”
Closing: Measured Condescension
End with a professional closing that reiterates your intent to pursue legal remedies should the violations persist. A polite, yet firm, sign-off is key.
- “Please be advised that I will not hesitate to seek legal remedies, including filing a motion for sanctions with the bankruptcy court, should these violations recur.”
- Sincerely,
- [Your Name]
- [Your Contact Information]
Attachments Section: Meticulous and Comprehensive
List all appended documents to ensure clarity and provide a comprehensive record of your correspondence.
- Attachments:
- Copy of Bankruptcy Petition
- Copy of [Offending Collection Notice/Document]
Frequently Asked Questions: Automatic Stay Violation Letters
Navigating bankruptcy law can be complex, particularly when creditors violate the automatic stay. Here are some frequently asked questions to help you understand your rights and how to address these violations.
What is an automatic stay?
The automatic stay is an injunction that immediately goes into effect upon the filing of a bankruptcy petition. It prohibits creditors from taking collection actions against the debtor, including lawsuits, wage garnishments, and harassing phone calls.
What constitutes a violation of the automatic stay?
Any action by a creditor to collect a debt after the bankruptcy petition is filed can be considered a violation. Examples include sending collection letters, making phone calls, continuing lawsuits, or seizing property without court approval.
What should I include in a letter to a creditor violating the automatic stay?
Your letter should clearly state that you have filed for bankruptcy, provide the case number and court where the petition was filed, and demand that the creditor immediately cease all collection activities. Include a copy of your bankruptcy petition as supporting documentation.
What if the creditor continues to violate the automatic stay after receiving my letter?
If the creditor persists in violating the automatic stay, you may need to file a motion with the bankruptcy court seeking sanctions for contempt. Consult with a bankruptcy attorney to discuss your legal options.
Can I receive compensation for damages caused by an automatic stay violation?
Yes, you may be entitled to compensation for actual damages, including emotional distress and attorney’s fees, if the creditor’s violation was willful. Punitive damages may also be awarded in certain egregious cases.
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