Sanctions for Violation of the Automatic Stay

The automatic stay, unless there's an exception, prohibits any creditor from attempting to collect on a debt outside of the bankruptcy process. The aim of this is two fold. The 1st is to provide to the debtor the protection that is offered under the Bankruptcy Code. The 2nd is to provide for an orderly process of handling all debts. There are 3 primary categories of violations 1) deliberate; 2) negligent & 3) unaware.

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