What actions must I take immediately if a creditor violates the automatic stay after I file for bankruptcy in California?
If a creditor violates the automatic stay, you must immediately notify the creditor of your bankruptcy filing and document the violation. If the behavior continues, you may need to take formal legal action through the bankruptcy court.
Here are the steps to take:
Step 1: Contact Your Attorney
If you have a bankruptcy attorney, this is your first and most important call. Your attorney will handle all communications and legal actions. If you filed without an attorney (pro se), proceed with the following steps.
Step 2: Formally Notify the Creditor in Writing
Immediately send a certified letter to the creditor. State that you have filed for bankruptcy and provide your case number, the filing date, and the court where it was filed. Demand that they cease all collection activities immediately. Keep a copy of the letter and the certified mail receipt.
Step 3: Document Every Violation
Keep a detailed log of every contact. Record the date, time, name of the person who contacted you, and what was said. Save all letters, emails, text messages, and voicemails. If money was taken from your account, save the bank statements showing the withdrawal.
Step 4: Stop Ongoing Garnishments or Payments
If a creditor is garnishing your wages, immediately provide your employer’s payroll department with your bankruptcy case number. Under California Code of Civil Procedure § 706.125, your employer must stop the withholding upon receiving notice of the stay. For automatic bank debits, contact your bank to place a stop payment order.
Step 5: File a Motion with the Court
If the creditor does not stop after being notified, you must file a "Motion for Sanctions for Violation of the Automatic Stay" with the bankruptcy court. This asks the judge to order the creditor to stop, return any money taken, and pay you for damages, attorney's fees, and potentially punitive damages for a willful violation.
Step 6: Check Your Credit Report
After your bankruptcy is filed, check your credit reports. Under the California Consumer Credit Reporting Agencies Act (CCRAA), the account should be marked as "included in bankruptcy" or discharged. Dispute any inaccuracies with the credit reporting agencies.
Important Considerations:
A creditor's actions are considered "willful" if they continue after they have been notified of your bankruptcy filing. Willful violations can result in significant financial penalties against the creditor. State laws like the Rosenthal Fair Debt Collection Practices Act (Cal. Civil Code § 1788.17) provide additional protections against harassing collection behavior.
Warnings:
Filing a motion with the bankruptcy court involves strict procedures and deadlines. Mistakes can cause your request to be dismissed. The automatic stay does not stop certain actions, such as criminal proceedings or some family law obligations.
This is general information and does not constitute legal advice. For complex situations, consult with a qualified California attorney.
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Disclaimer:
This information is for general guidance only and should not be considered as legal advice. Please consult with a qualified attorney for specific legal matters.
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Updated: August 13, 2025
Bankruptcy & Debt
Debt relief, bankruptcy procedures, and creditor protection
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