How To Use Automatic Stay In Bankruptcy To Stop Creditors? 

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lasbcyattorney
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Joined: 7/15/2021
Topic  How To Use Automatic Stay In Bankruptcy To Stop Creditors?       Flag »  Reply »
Bankruptcy Attorney is so much more than the discharge of debt. If you have been doing your bankruptcy research, you may have come across “automatic stay” a couple of times now. The automatic stay is just as important as the discharge you receive at the end of your bankruptcy. When you begin your bankruptcy petition the law protects the debtor from any debt collecting activity. A bankruptcy is a way of saying to your debtors that you are doing something about the debt you have incurred. Though you may not be able to pay off all your debt, a bankruptcy is a sign of your initiative to pay something back. For this reason, the government prevents any debt collector or creditor from pursuing debt collecting activities while you are trying to figure out how you will pay them back.

A debt can either be paid back in part through a Chapter 13 or may be discharged through a Chapter 7 liquidation. Through a Chapter 13, you are capable of paying back your debt over a three to five-year program In Chapter 7 you essentially pay back with your property. When you pay back with your property, a United States trustee will be in charge of selling your items and using the gains to pay back the creditors you owe. In both instances, as soon as you submit the paperwork for a bankruptcy, you are protected by the automatic stay laws. It does not matter if you are filing under a Chapter 7, a Chapter 13, or a Chapter 11, debtors who file through any chapter in bankruptcy will be protected by the automatic stay losangeles-bankruptcyattorney.com .

The bankruptcy automatic stay law is one of the biggest reasons that a person may consider to file a bankruptcy. Individuals who are facing lawsuits, wage garnishments, foreclosure, or who are tired of debt collecting activities may file a bankruptcy in order to stop most debt collecting activities. When a debtor is protected by the automatic stay, it means that a creditor or debtor may not pursue any debt collecting activity. When a creditor or debt collector pursue a debt after the debtor has filed for bankruptcy, they may face lawsuits.

An automatic stay kicks in right after you submit your bankruptcy petition meaning that it does not require a court action. The law kicks in automatically after you submit your documents. Soon after you submit your documents you are free to let your creditors know that you have filed a bankruptcy. As soon as your creditors receive that one-page document stating that you are filing for bankruptcy, they may no longer pursue your debt. For this reason, the automatic stay is one of the most popular reasons that a person might consider a bankruptcy. In fact, many debtors file emergency bankruptcies in order to benefit from the automatic stay.
  Thursday, July 15, 2021 at 4:39:39 PM

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