Personal Injury Lawyer
When you work with a bankruptcy attorney you can rely on, one of the first things you will likely hear about is what is called the “automatic stay.” When a court begins the bankruptcy process, they can put an automatic stay in place to help protect you from creditors who may be calling, paying you a visit, or sending you letters and harassing you. If you are concerned about creditors bothering you during this time, please speak to an attorney about learning how bankruptcy and the automatic stay can help you.
What will happen once an automatic stay is in place?
When a court puts an automatic stay in place, there are a few things that will happen:
- Protection from getting evicted. If you are in danger of being evicted, it is possible the automatic stay will help. If you have an automatic stay in place before your landlord sends you a notice of eviction, it is possible that it can help buy you a few more weeks.
- Protection from getting your utilities disconnected. If you have been unable to pay your utility bills and are concerned that your gas, electric, or other services may be disconnected, an automatic stay can help make sure your utilities are not disconnected for 20 days or more.
- Saving your home from foreclosure. If you are concerned about your home being foreclosed on, the automatic stay can help stop these proceedings. However, if you are hoping to keep your home through the bankruptcy process, this will depend on whether you file for Chapter 7 bankruptcy or Chapter 13. Speak with your attorney if you are hoping to keep your home after bankruptcy.
Can a creditor still collect during an automatic stay?
While an automatic stay will initially protect you from creditors who are harassing you, it is possible for creditors to speak with the bankruptcy court and have the court approve a “lift” of the automatic stay on their behalf. This means they will be able to continue collecting and reaching out to you.
Get Help Today
Filing for bankruptcy can be difficult. However, there are skilled lawyers who can assist you and know that getting an automatic stay put in place can help you out during the bankruptcy process immensely. If you have any questions about the automatic stay or if you would like to get started, contact a lawyer, like a Chapter 7 bankruptcy lawyer from Pioletti Pioletti & Nichols, today.