The Automatic Stay

How the Automatic Stay Protects Bankruptcy Filers

The moment a debtor files for bankruptcy, the automatic stay goes into effect. This important protection puts an immediate stop to most debt collection efforts, including phone calls from creditors, wage garnishments, and even repossession and foreclosure proceedings.  

Collection Actions Prohibited by Bankruptcy's Automatic Stay

When you file for any kind of bankruptcy, the automatic stay goes into effect. The stay prohibits creditors and collection agencies from taking any action to collect most kinds of debts you owe them

Exceptions to Bankruptcy's Automatic Stay

Once you file for bankruptcy you are protected from your creditors by what is known as the automatic stay.

Exceptions to the Automatic Stay: Repeat Bankruptcy Filings

When you file a Chapter 7, 11, or 13 bankruptcy, the automatic stay prevents creditors from trying to collect debts from you. This means they can’t contact, bill, or sue you or undertake other collection activities like repossessing your property or garnishing your wages.

Will Bankruptcy Stop Credit Card Collections?

Filing for bankruptcy will immediately stop all credit card collections and lawsuits, and will prevent a credit card company from initiating any new lawsuits. This hiatus on collection, called the automatic stay, lasts while your bankruptcy is pending.

Can Bankruptcy's Automatic Stay Stop Wage Garnishment?

Will Bankruptcy Stop the IRS From Collecting Tax Debts?

The automatic stay will stop the IRS from collecting taxes debt that you owe once you file a Chapter 7 or Chapter 13 bankruptcy. But depending upon the nature of the tax debt you owe, the IRS may be permitted to collect from you later.

Can Bankruptcy Stop Medical Collections & Lawsuits?

If you have outstanding medical bills to doctors, dentists, hospitals, or other medical personnel or facilities, you may be receiving harassing phone calls or letters demanding payment.

When Can a Creditor Get Relief From the Automatic Stay?

Once a debtor files for bankruptcy, an automatic stay goes into effect immediately, which stops creditors from attempting to collect their debts.

Will Chapter 7 Bankruptcy Stop an Eviction?

Bankruptcy's automatic stay will prevent your landlord from beginning or continuing with eviction proceedings during your Chapter 7 bankruptcy. However, there are two important exceptions to this rule. In addition, the landlord can always ask the judge to lift the stay, and courts tend to grant these requests.

Will Bankruptcy Stop Foreclosure?

When you file for bankruptcy, the automatic stay prohibits your mortgage lender from moving forward with the foreclosure process. However, how long this protection lasts depends on whether you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy.

Is a Car Repo Legal During Bankruptcy?

Once you file for bankruptcy, a car lender cannot repossess your vehicle without permission from the court. If you are behind in your payments, however, it's likely that the court will eventually allow the repossession to proceed. Here's how it all works. Bankruptcy's Automatic Stay When you file for

Will Chapter 7 Bankruptcy Prevent a Car Repossession?

If you are not making timely car loan payments, Chapter 7 bankruptcy cannot permanently prevent a car repossession. However, Chapter 7 can temporarily delay the lender from repossessing your car and allow you more time to negotiate or cure your default.

I am filing for bankruptcy. When does the automatic stay start protecting me from creditors?

I am filing for bankruptcy. When does the automatic stay start protecting me from creditors?

What happens if one of my creditors keeps trying to collect from me after I file for bankruptcy?

What happens if one of my creditors keeps trying to collect from me after I file for bankruptcy?

If a creditor continues to harass me after filing bankruptcy what do I do?

Answer: When you file for Chapter 7 or Chapter 13 bankruptcy, the bankruptcy judge issues something called the "automatic stay." The automatic stay prohibits most creditors from continuing collection actions against you during your bankruptcy case.

My car was repossessed after I filed for bankruptcy. What can I do?

Suppose you file bankruptcy and several days later discover your car, van, SUV, motorcycle, or truck is missing. With a frantic call to the local police department you learn that your creditor has repossessed your car. Fortunately, most creditors will release the car right away after you notify them