The Automatic Stay
For people facing the possibility of a home foreclosure, auto repossession, wage garnishment or other adverse creditor actions, bankruptcy may be able to provide a safe haven. One of the ways that consumer bankruptcy provides immediate relief is through the automatic stay.
Filing for Chapter 7 or Chapter 13 bankruptcy results in the creation of an automatic stay, which goes into effect the moment your case is filed with the bankruptcy court. The automatic stay temporarily halts most creditors from further collection efforts.
When you retain Sno-Isle Bankruptcy, we include in your bankruptcy filing a list of your creditors names and addresses. Upon receipt of your bankruptcy petition, the court sends out a notice to your creditors that you have filed for bankruptcy and are entitled to the protection offered by the automatic stay provision of the U.S. Bankruptcy Code.
Are There Any Limitations?
Most creditors are temporarily barred from further collection efforts. The automatic stay may halt creditor actions by a home mortgage lender, auto loan company, credit card company, collection agency and most other types of creditors.
Since limited debts may not be discharged in bankruptcy — certain tax debts and child support debts for example — there are a limited number of creditors whose collection efforts may not cease.
Contact an Everett Bankruptcy Lawyer to Learn More
To learn more about bankruptcy and the automatic stay, contact Sno-Isle Bankruptcy in Everett, Washington. To schedule a free consultation, call 425-265-9400 or contact us by e-mail.
