What is the Automatic Stay?

An automatic stay is a protective injunction that kicks in when you file for bankruptcy. It can protect you from certain creditor actions, including most collection activities. An automatic stay is a valuable aspect of chapter 7 or chapter 13 bankruptcy.

If you are facing serious financial difficulties such as foreclosure, are behind on child support payments or alimony, or are suffering from creditor harassment, contact our bankruptcy lawyer in California to learn how filing for personal bankruptcy may be able to help.

As soon as you file for bankruptcy, the automatic stay temporarily stops foreclosure and other proceedings. An automatic stay may be able to:

• Stop you from being evicted if you rent
• Stop your utilities from being disconnected
• Stop repossession of your vehicle and other property
• Stop wage garnishment and the loss of any owed back payments of public benefits

The automatic stay can provide you with significant relief from collection activities. Collection agencies and creditors may not continue to contact you once you have filed for bankruptcy, and the automatic stay can protect you from lawsuits related to your debt.

Some exceptions to an automatic stay during a personal or business bankruptcy may include domestic support litigation, evictions for which the property owner has already received a judgment of possession, criminal prosecution, and IRS actions.

Other exceptions may also exist. Our experienced bankruptcy attorney can help you better learn how bankruptcy exemptions and the automatic stay may best protect you in your unique situation.

Although the automatic stay can provide significant relief for severely harassed debtors, it may not always be automatic. For example, if you have filed for chapter 13 or chapter 7 bankruptcy within the past year, you may be required to file a motion for a stay.

If you are facing financial difficulties, creditor harassment, foreclosure, repossession, or eviction, contact our Los Angeles bankruptcy attorney today to find out how we can help.

Source: Los Angeles Bankruptcy Lawyer

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