Filing Bankruptcy May Stop Creditor Harassment
The Automatic Stay: Designed to Stop Foreclosure, Repossession & Lawsuits
When a person files for Chapter 7 or Chapter 13 bankruptcy relief, in most cases they receive immediate protection from creditors through a special court order known as the bankruptcy automatic stay. This means CREDITORS MUST stop COLLECTION EFFORTS.
The Bankruptcy Automatic Stay Was Designed To:
- HALT Foreclosure
- STOP Repossession
- SILENCE Creditors
- STOP Many Lawsuits & Wage Garnishments
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The Bankruptcy Code protects you by force of the automatic stay provision. With very limited exceptions, this "stay" prohibits all collection activity after filing bankruptcy.
The automatic stay stops any lawsuit filed against you and almost any other action against you, your property and your paycheck.
This means that if a creditor attempts to collect a bill they are in violation of the courts and could be prosecuted. Phone calls, letters, attempts to foreclose or repossess property are all types of collection.
File Bankruptcy to Use the Automatic Stay
The automatic stay is invoked when filing both Chapter 13 and Chapter 7 bankruptcy. In the case of Chapter 13 bankruptcy, the automatic stay provision may stay in effect for the duration of your repayment period, which could be 3-5 years.
If you think you could use the automatic stay to stop harassment, lawsuits and foreclosure, speak with a bankruptcy attorney about your options.
Simply complete the free case evaluation form on this page and we'll connect you with a local bankruptcy lawyer right away.
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