What constitutes a violation of the automatic stay?

Get Legal Help Today

 Secured with SHA-256 Encryption

What constitutes a violation of the automatic stay?

I filed a Chapter 13 almost 3 1/2 years ago; I made my last payment to the trustee last month. Recently I refinanced my home mortgage. During the process of gathering information for the refinance I received a payoff letter from the lender, a bank, that did not mention any legal fees. It merely stated the amount due on the loan. Today the bank refused the pay off fee stating that I owe $2,611.07 in legal fees from being transferred to the their bankruptcy department. I have never been late with them, never in the rears and this mortgage was not included in the bankruptcy. Is this legal? Is it a violation of the stay?

Asked on January 16, 2015 under Bankruptcy Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

No, it's not a violation of the stay:

The stay is just that: a "stay," or temporary stop to collections efforts. It does not stop charges, interest, amounts, etc. from accruing--it just prevents legal action to collect on them while the stay is in effect. If the stay is now not in effect, then there is no violation from the fact that they are seeking the money now, even it includes costs or fees accrued during your bankruptcy.

You write that the mortgage was not included in the bankruptcy, which further reduces the impact of the bankruptfy and stay on the account or deb.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption