Automatic Stay

How the Automatic Stay works in bankruptcy

Repossession

Foreclosure

Wage garnishment

All attempts by creditors to collect a debt

Harassing phone calls and collection activites

When Filing Bankruptcy

Emergency Bankruptcy and the Automatic Stay

The Automatic Stay is effective when immediate action is needed.  For example, in the case of a foreclosure, repossession, or wage garnishment, an emergency bankruptcy filing may be necessary.  Upon filing, the Automatic Stay works in the best interest of the debtor when facing emergency debt situations.

In addition, certain debt collections including some tax debt, child support, or criminal restitution debt may not be stopped or stalled by the Automatic Stay.  Therefore, it is best to contact Chapter Bankruptcy Lawyers and schedule a free debt evaluation and consultation with an attorney to determine if an Automatic Stay will help your specific case.

Furthermore, if you file a Chapter 7 bankruptcy and are behind on mortgage or vehicle payments, a creditor may petition the court to remove the Automatic Stay in order to proceed with a foreclosure or garnishment.  Thus, another reason to have the expert legal representation of Chapter Bankruptcy Lawyers.  Typically, there is a period of time to respond to this petition. Depending if you want to keep the property, your attorney can advise you if Chapter 7 or 13 would best benefit you.