You’ve probably heard the phrase “bankruptcy protection”, but do you know how filing for bankruptcy could actually protect you?
The bankruptcy automatic stay offers one of the major protections in a bankruptcy case. Here are some basics on the automatic stay:
Immediate effect: Usually, right after filing bankruptcy, the automatic stay goes into effect. It prevents collection action against you of any kind, including:
- Creditor contact
- Foreclosure
- Repossession
- Garnishment
- Lawsuits
Duration of protection: The automatic stay’s protection lasts as long as your bankruptcy case is pending – for a Chapter 7 case, usually a few months; for a Chapter 13 case, typically three to five years.
Note: In some cases, the automatic stay can be lifted before a bankruptcy discharge. If a creditor requests the stay be lifted, a judge may do so. If the property protected by the stay no longer makes up a part of the bankruptcy estate, the automatic stay’s protection may lapse.
Will the Bankruptcy Automatic Stay Help You?
If you’re trying to hang on to your home or car, struggling to keep the utility company from shutting off your service, being harassed by creditors or experiencing wage garnishments, the bankruptcy’s automatic stay may be able to help you.
Contact a bankruptcy lawyer.
Tags: automatic stay, bankruptcy attorney, Bankruptcy Automatic Stay, filing bankruptcy
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