Do you know —
- If you repossess a vehicle but the debtor files bankruptcy before you sell it, how long do you have before you have to give it back? Do you have to give it back at all?
- When may you sue a debtor who is still in bankruptcy with an active automatic stay?
- May you place a hold on deposits while the automatic stay is still in effect?
- Must you always stop automated payments if you learn the debtor has filed bankruptcy?
The “automatic stay” is one of the most important (and most litigated) concepts in bankruptcy — but it is also one of the most misunderstood. Most creditors have heard of the automatic stay and that it prohibits them from “doing anything to collect,” but it prohibits other things too! And most creditors know the stay begins when a debtor filed bankruptcy, but is that always the case? And when does the automatic stay end?
It is essential that those who collect consumer debts have a solid understanding of the automatic stay. Those in management who are responsible for oversight of the collections department must also understand the rule well enough to perform their supervisory role. In fact, anyone who may interact with a borrower who has filed bankruptcy should have at least a basic understanding of the rule.
During this program, participants learn about issues including:
- When exactly the automatic stay begins. The general rule is easy, but there are exceptions that are important to know and myths to avoid.
- When the automatic stay ends. The Bankruptcy Code lists multiple times the automatic stay ends without your financial institution taking any action at all.
- When you entitled to have the automatic stay lifted, and what you must do and show to have that happen?
- What the automatic stay really prohibits. May you return a call from the debtor? May you call to ask about insurance? May you send a payment reminder on a credit card or an auto loan? What about on a mortgage or a HELOC? May you send periodic statements? If you repossess a car before the bankruptcy is filed, does the automatic stay require you to release it after it has been filed? Does the automatic stay prohibit you from freezing funds on deposit?
- How knowledge of the limitations of the automatic stay, together with careful planning, can help your financial institution save money on legal fees.
Join collections, compliance and management professionals from across the country on December 5 for this program to learn how to best protect your financial institution!
For more information, call NorthLegal at 623.537.7150.
NorthLegal Training and Publications | 5115 N. Dysart Rd, No. 202-500, Litchfield Park, AZ 85340
BK 102 – The Automatic Stay – In Detail – BK 102 – The Automatic Stay – In Detail – BK 102 – The Automatic Stay – In Detail BK 102 – The Automatic Stay – In Detail – Bankruptcy – Credit Union Collections – Credit Union Collectors – Northlegal – Northlegal
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