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.
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.
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.
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.
Upright Law has been very patient and answered all the questions I asked. Having never needed a lawyer or filed bankruptcy I was rather anxious about stepping into this procedure.
Everyone that I have dealt with was very kind even when I thought I was probably bothering them with every little thing that I thought of.
This is all very stressful for me, especially because I was very ill and worrying every month about medical tests. I have never felt so less in control than I do now so I am very grateful for all the help that has been given me.Jane M. Maine