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Stay and Confirmation Violation Damages in a Chapter 13

On Behalf of | Jun 19, 2012 | Bankruptcy

The law firm of Godbey & Associates recently settled litigation for a Chapter 13 client against a local hospital for violations of the Bankruptcy Stay and the Confirmed Chapter 13 Plan. Â In the case, the hospital received notice of the Chapter 13 filing and continued to send bills directly to the client over a span of three months after the case was filed and the Court approved their Chapter 13 plan.

The Automatic Stay is what happens when you file your Bankruptcy Case that generally bars your creditors from contacting you directly, via any written or phone communications, about the debts involved in the bankruptcy. Â If your creditors are contacting you after you file, you need to contact your attorney.


When you file a Chapter 13, the approval of your Chapter 13 Plan by the Court is called confirmation.  This confirmation order carries certain legal duties to your creditors with respect to contacting you and how they are paid by the Chapter 13. If your creditors are contacting you after your plan has been confirmed, they have violated the automatic stay and the confirmation order.


This case represents a very typical situation for a lot of Chapter 13 Clients and it is very important for you to know your rights but also for your creditors to respect those rights as well.

Brian D. Flick, Esq.



This blog is written and published by Godbey & Associates.