Stop Foreclosure, Repossession, Garnishment
End Creditor Harassment Immediately with the Automatic Stay
Are you facing foreclosure? Maybe you fear the day that your car is repossessed? Creditors calling all hours of the night, even at work? Get immediate relief when you file for bankruptcy under Chapter 7 or Chapter 13. Immediately upon the filing of a petition for relief in bankruptcy an automatic stay becomes effective against all creditors! This includes secured, unsecured, and priority creditors. Even the Internal Revenue Service. The automatic stay is defined by the United States Bankruptcy Code and is provided in both Chapter 7 Bankruptcy and Chapter 13 Bankruptcy.
What Creditors May Not Do After you File For Bankruptcy
This automatic stay prohibits creditors from taking any action to collect or pursue collection of a debt. In other words, a creditor may not file or continue a lawsuit against you. Execute on a bank account or other asset. Garnish wages. Foreclose on your home. Or repossess your automobile. All collection activity is halted automatically immediately upon the filing of a bankruptcy petition. Even if the creditor has already obtained a judgment against you. The bankruptcy automatic stay prevents the creditor from taking any action whatsoever to enforce the judgment. Without the consent of the bankruptcy court.
Keep in mind that it may take a few days to a week for creditors to be notified of the filing of a bankruptcy. So if you have a creditor that you believe may take such action be sure to tell your bankruptcy attorney. So your bankruptcy lawyer may send the creditor a Notice of Automatic Stay by fax or email.
Automatic Stay Requires Creditors to Go to Court
After the filing of a bankruptcy petition any creditor must file a motion to lift the automatic stay in the bankruptcy court. The creditor’s motion must be heard and approved by the court before taking any action. There are times that a creditor will violate the automatic stay. Such a violation may be punishable by the bankruptcy court. By civil penalties as well as compensation to the debtor. This process gives you time to make arrangements if your car is going back. Or if you are surrendering your house. It also ensures that you have a fair hearing without nasty surprises.
Bankruptcy Attorney Will Explain Automatic Stay
There are many issues which are involved with the automatic stay. There are also limits for repeat bankruptcy debtors. Speak to an experienced bankruptcy attorney about the automatic stay. Its benefits. Its affect on the ability of the bankruptcy debtor to purse a lawsuit against someone else. Even the impact on an ongoing divorce. You also must be mindful that because of the awesome power of the automatic stay, bankruptcy filings are carefully scrutinized to prevent abuse of the automatic stay. Seek advice, counsel and assistance from a bankruptcy lawyer in Chattanooga, Tennessee.