The Automatic Bankruptcy Stay
Filing for bankruptcy relief invokes a serious protection from creditor action that cannot be taken lightly. Whenever a bankruptcy case is filed, the debtor receives the automatiuc stay. This means that if there is a law suit related to debt, it must be put on pause or dismissed. If a debtor is being garnished, it must immediately stop. If there is a foreclosure scheduled for the next day, it must not happen. If creditors are calling or sending letters, they must stop doing so.
Many people use bankruptcy protection for relief in the following situations: wage garnishments, foreclosure proceedings, collection actions, creditor harrassment, and vehicle repossession. Filing a bankruptcy case will put an immediate and mandatory stop to all of these actions.
If you have multiple bankruptcy cases within a certain amount of time, the protection, or the stay may be limited. In certain situations, the stay is only temporary. It is important to speak to an experienced bankruptcy attorney to know your rights and obligations as a bankruptcy debtor.
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