Debt > Bankruptcy > Automatic Stays |
Debt Kit -- Settle unsecured debts for less than half of amount owed Credit Kit -- Improve credit rating and reduce monthly bills by $200+ |
Bankruptcy: Automatic Stays An automatic stay is a court order that goes in to effect after you file bankruptcy. This court order prevents your creditors from trying to collect any debt from you from the moment they receive notice. This means that they cannot phone or write you, harass or threaten you, and above all, they cannot sue you. An automatic stay also has the following effects: Repossessions -- None of your property can be repossessed; Taxes -- The IRS is barred from any collection activities; Landlords -- You cannot be evicted, even if you are behind in your rent; Mortgages -- Your mortgage company cannot begin or continue with foreclosure proceedings; Litigation -- Lawsuits and wage garnishments are barred or suspended (paternity suits and child support-related litigation are not barred or affected). What an Automatic Stay Does Not Affect Criminal proceedings can proceed against you regardless of whether you filed bankruptcy. Also, note that the creditor can go after anyone who co-signed debt for you or a co-debtor, such as a spouse who did not file bankruptcy with you. A creditor can also ask that they stay be lifted in certain situations, particularly if the debt is collateralized. The above information explains why bankruptcy is often used as a tool to fight back against threats of foreclosure, repossession or litigation. |
Debt Kit -- Settle unsecured debts for less than half of amount owed Credit Kit -- Improve credit rating and reduce monthly bills by $200+ |
Debt > Bankruptcy > Automatic Stays |
