The Bankruptcy Judge ordered that the creditors had acted against the person in bankruptcy without the court’s permission. Specifically, this demonstrates the power of the Bankruptcy Court’s protection of people filing bankruptcy to be sure “bankruptcy protection” is the basis of this federal law.
The idea is to help people in debt and protect them from creditors. Many times people believe that bankruptcy is a “negative” – nothing could be further from the truth! Bankruptcy eliminates debts, wipes your credit report clean and protects you from the actions of creditors.
Once your case is filed, the court enforces a stay of execution, which is essentially a cease and desist order. This means creditors harassing calls are required to stop. In addition all collection activity must cease and violations are strictly enforced.
In this case the court found the creditor’s violation to be worth a $10,000 contempt judgment payable to the client.
The Mortgage company, Nationstar, continued to file motions against the client in a state court action after the Bankruptcy Chapter 13 was filed.