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Category: Automatic Stay

  • Automatic Stay Stops Creditors in Their Tracks

    Automatic Stay Stops Creditors in Their Tracks

    Call: 888-297-6203

    When you have fallen behind on your dues, there is no way of preventing the threatening actions of creditors. You will end up facing harassing phone calls and threatening emails seeking legal action against you. Dallas based bankruptcy law firm Recovery Law Group, say that filing for bankruptcy can be the best way to not just get rid of this nuisance but also of a large amount of unsecured debts which are holding you back.

    Once you file for bankruptcy, the court orders the automatic stay order to be served to all the creditors listed in your bankruptcy papers. Once the creditors are served with the order, they cannot continue with the collection efforts. Violation of the automatic stay is a punishable offense and for a change, the creditors will be at the receiving end if they try to contact you.

    Know more about automatic stay benefits:

    It is the first order that is issued by the bankruptcy court when you file your bankruptcy petition. The automatic stay is immediately placed into effect and remains for the entire duration of your bankruptcy case. With automatic stay in place, you are assured that your secured and unsecured creditors cannot initiate any type of collection actions. This means that your property cannot be repossessed, foreclosed or your wages garnished.

    It is also important to realize that since criminal restitution, domestic support and certain property taxes are priority debts and therefore cannot be discharged in bankruptcy, the automatic stay cannot offer protection against them. This order is permanent for all debts which were included in bankruptcy and received a discharge through it. However, if a creditor gets a court order to lift the automatic stay, the protection won’t be accorded.

    Having a bankruptcy lawyer can make things easier for you. If you haven’t hired one, you can schedule an appointment with experienced bankruptcy lawyers to discuss your case by calling 888-297-6023.

  • Automatic Stay – Way to Stop Your Creditors

    Automatic Stay – Way to Stop Your Creditors

    One of the best advantages that bankruptcy can offer debtors is an automatic stay. this puts an immediate end to all collection actions and any civil lawsuit filed against you by the creditors, government or collection agencies. The upside of the automatic stay as per Los Angeles based bankruptcy law firm Recovery Law Group  is that it can help you prevent being evicted or protect your property from being repossessed or foreclosed on, utilities being disconnected or wage garnishment. For more information on automatic stay, call 888-297-6023 and speak with expert bankruptcy lawyers.

    What can automatic stay prevent?

    The automatic stay can come in handy in several emergencies like:

    • Utility bills. In case you are behind on utilities like water, gas, telephone or electricity and face disconnection, the automatic stay can prevent it for a minimum of 20 days. however, you need to pay a deposit to ensure future payment.
    • Foreclosure. The automatic stay prevents the proceedings of foreclosure. You can catch up on past payments in the Chapter 13 repayment plan if you wish to keep your home. However, if you are behind on your payments in a chapter 7 bankruptcy case, an automatic stay is a temporary relief.
    • If the landlord has a judgment against you, or they allege you are endangering the property then automatic stay cannot help. In other cases, the automatic stay may provide temporary relief, however, the landlord might ask the court to lift the stay and allow eviction.
    • Wage garnishments. the automatic stay puts an end to collection actions like this. You can discharge qualifying debt like credit card or personal loan dues. However, alimony and child support debts cannot be discharged. Priority unsecured debts are dealt with differently in different bankruptcy chapters.
    • Overpayment of public benefits. The agency is entitled to collect any overpayment made from future checks or from you directly. The automatic stay prevents the collection but does not prevent the agency from terminating benefits.

    In what circumstances automatic stay is not of much help?

    An automatic stay cannot help you in some cases like:

    • Tax proceedings. IRS can audit you, issue tax deficiency notice and tax assessment, demand tax return or payment of assessment despite the automatic stay. However, there can be a temporary pause to issue of tax lien by IRS or seizing your income or property. The taxes could get discharged in Chapter 7 bankruptcy Dallas, or you might end up paying the debt in Chapter 13.
    • No respite from legal actions. A lawsuit for paternity establishment, modification or collection of spousal or child support won’t be stopped. Similarly, any criminal proceeding against you (sentence, paying fine, community service, ) won’t be stopped by the automatic stay.
    • A loan from the pension. Money can still be withheld from your income despite automatic stay to repay loans from some pensions like IRAs and job-related ones.
    • Numerous filings. In case you have a pending bankruptcy case from the previous year, the automatic stay lasts only for 30 days unless the creditor or the trustee asks for its continuation. In case any creditor files for a motion to lift the automatic stay, you will need to prove that the bankruptcy case was filed in good faith and the automatic stay protection should continue.

    Can creditors resume collection action?

    Creditors can ask the court to lift the automatic stay sanction by filing a motion in bankruptcy court. This is generally done in case of a foreclosure, tenant/landlord dispute or a lawsuit in a different court. If the creditor can show that they will lose money with automatic stay in place and no benefit/harm will come to other creditors, the court might agree.


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    • Benefits of Automatic Stay during Bankruptcy

      Benefits of Automatic Stay during Bankruptcy

      Many people do not realize when they have incurred heavy debts thereby leaving bankruptcy as the last resort. However, not many people are aware that bankruptcy offers a lot of protection to debtors. One of the most important tools of bankruptcy is the automatic stay, which helps stop all actions taken by collection agencies to collect dues from you. In case you are facing eviction issues, foreclosure or repossession problems, due to losing utility or benefits, or are unable to make child support problems; automatic stay comes to the aid of you and your family, in this time of financial mess. (more…)

    • How Can Automatic Stay Help People Filing For Bankruptcy?

      How Can Automatic Stay Help People Filing For Bankruptcy?

      Bankruptcy is a daunting word, especially for those who are facing acute financial problems. Filing for bankruptcy does not come easy for people. However, it is surprising that many people are unaware of the fact that a number of options are available for people that can help you during this process. The automatic stay is one of the biggest arsenals in the kitty for people who file for bankruptcy. However, not much is known about this tool. The automatic stay is a part of all bankruptcy cases and helps stop all creditors and debt collection agencies from taking any collection actions against you. (more…)