     Sandy | Tuesday, March 07, 2000 - 02:30 pm 
Have you ever heard of a Cease Communication Notice as it relates to bankruptcy? If so, what is it? Also, can a creditor just cease property without notice or must they go through the courts? Thank you for your help. |
| Voigtkampff | Wednesday, March 08, 2000 - 05:04 pm
I'm waiting for someone else to answer this because I am not sure. I have never heard of anything called a "CEASE COMMUNICATION NOTICE". But in case something was lost in the translation or paraphrasing, you might be referring to something called the §362(a) "automatic stay". It is an injunction (similar to the protective order or restraining order that you hear about in divorces). The stay prohibits creditors from taking almost any action against a debtor. That includes all communications. In fact, creditors are so afraid of it that mortgage and car loan companies often stop invoicing the debtors during a bankruptcy, even if the debtor WANTS to keep paying.
It would be quite unusual for a creditor to be able to seize any property without first getting court permission. Once the automatic stay is in place, it will stop someone from garnishing your paycheck, seizing your home in foreclosure, repossessing a car, etc. The creditor has to get around that automatic stay before they can do such things. They request "relief" from the stay.
There are some exceptions where creditors may be able to seize property without going through the courts. Some property is not protected by the stay because it never became "property of the (bankruptcy) estate". There are other reasons why stay relief is not needed but I forget. The general rule remains that stay relief is needed before seizure. |
| Sean (Sean) | Wednesday, March 08, 2000 - 05:10 pm
Whenever a debtor is represented by an attorney for debt matters the collection agents should contact the attorney and not the consumer. That's the closest I can figure. |
