The Automatic Stay in Bankruptcy

The Automatic Stay in Bankruptcy

The automatic stay in bankruptcy is one of the most powerful tools available to people overwhelmed by debt. In most cases, the automatic stay takes effect as soon as the bankruptcy case is filed, prohibiting creditors and debt collectors from taking any further collection action.

The automatic stay can put an immediate stop to:

In short, the automatic stay takes the pressure off. The phone stops ringing. Those bright red past due notices stop filling the mailbox. The threat of vehicles being repossessed from the parking lot at work or someone knocking on the door with an eviction notice is eliminated. With that sense of urgency removed, it’s easier to make good decisions and begin to rebuild.

Automatic Stay Violations

Not all creditors and debt collectors play by the rules, but that doesn’t mean a bankruptcy petitioner is at their mercy. The automatic stay is a court order, and collectors who violate that order can be held accountable.

If a lawsuit is filed in violation of the automatic stay, it must be stopped. If property is seized in violation of the stay, it must be returned. The creditor or collector may even be required to pay monetary damages for violating the automatic stay.

Upright Law Enforces the Automatic Stay

Many bankruptcy law firms are focused on getting to discharge and ignore automatic stay violations. At Upright Law, we’re committed to ensuring that you get the full protection of the law. We’ll enforce the automatic stay to protect your property and your peace of mind.

Creditor Harassment and the Automatic Stay

The automatic stay protects against creditor harassment during bankruptcy. When creditors or debt collectors file lawsuits, send collection letters, make collection calls or take other collection action during bankruptcy, the bankruptcy court can impose sanctions. In some cases, those collectors may even be required to pay monetary damages.

Once a bankruptcy case is filed, creditors and collectors must stop collection activity or pay the price. Learn more about motion to extend automatic stay today.

See if You Qualify for
Bankruptcy Protection
Get Started

Get your
free evaluation

Get Started

We are committed to your privacy. By submitting, you agree the phone number you provided may be used to contact you by the law firm and its affiliates (including autodialed, pre-recorded calls or text messages). If you want us to contact, you without consenting to these methods of communication, call or click here.

(888) 408-9779

Get Access to Justice Today

Free evaluation

Available Online 24/7

We are committed to your privacy. By submitting, you agree the phone number you provided may be used to contact you by the law firm and its affiliates (including autodialed, pre-recorded calls or text messages). You are not required to purchase any services as a condition of this agreement.

Don't want to fill out a form?

Give us a call: 888-408-9779

Over 200 Attorneys
in cities and towns throughout the country waiting to help you get a fresh start

Over 25,000 Families' Lives
successfully improved nationwide through representation by our law firm