How does an Automatic Stay work?

pThe automatic stay is one of the fundamental debtor protections provided by the bankruptcy laws. It gives the debtor a breathing spell from his creditors, stopping all collection efforts, all harassment, and all foreclosure actions. It permits the debtor to attempt a repayment or reorganization plan, or simply to be relieved of the financial pressures that drove him into bankruptcy. Notes of Committee on the Judiciary, Senate Report No. 95-989/p
pChapter 7 Bankruptcy Automatic Stay/p
pa href=http://www.nwosulaw.com target=_blankSan Jose chapter 7 Bankruptcy Attorney/a/p
pOne of the most immediate effects of Chapter 7 bankruptcy protection is the automatic stay provision, which generally prevents creditors from collecting debts from you. This means your credits will no longer be able to call you at home or at work or at all hours of the day and night, they wonrsquo;t be able to send you nasty collection letters, and they wonrsquo;t be able to file a lawsuit against you./p
pCreditors are not allowed to call you or send you collection letters. They also can not take or continue any legal action against you or repossess your car or other assets. The automatic stay stops garnishment of your wages. This means that in Chapter 7, the stay may prevent immediate foreclosure on a debt secured by real estate. However the lender may proceed to secure a release from stay./p
pChapter 13 Bankruptcy Automatic Stay/p
pa href=http://www.nwosulaw.com/ target=_blankSan Jose Chapter 13 Bankruptcy Attorney/a/p
pIn Chapter 13, the automatic stay gives the debtor protection from his creditors, subject to the oversight of the bankruptcy judge, and brings all of the debtors assets and creditors into the same forum, the bankruptcy court, where the rights of all concerned can be balanced./p
pThe Power of Bankruptcy Automatic Stay: It will Prohibits the following:/p
pStop Beginning or continuing law suits: The automatic stay will stop all lawsuits from proceeding effectively immediately from the time that you file your petition. It is very important that you consult with an attorney to determine how this will affect you in the future./p
pStop Foreclosure: The automatic stay will also stop the foreclosure action. In California, Chapter 7 filing wiling will delay foreclosure action temporarily. Chapter 13 bankruptcy is the best option for stopping foreclosure of your home especially if you want to remain in the house and continue payment./p
pStop Repossession: Automatic Stay will prevent creditors from taking your car and allows you time to decide whether to return the car back to the lender or retain it. The lender may try to get a release from stay especially if you have huge equity in the car. You can keep the car on a permanent basis if you reaffirm your car loan./p
pStop Collection Calls and Harassment: Annoying phone calls especially at night will stop immediately. Automatic stay will also stop all collection calls and activity by the collection agents effective immediately from the time that you file your petition./p
pStop Wage Garnishments: Automatic Stay will stop wage garnishments and levies. You will start getting your full pay check and your debt is dischargeable. An experienced attorney will likely be able to eliminate the entire outstanding debt in bankruptcy./p
pStop Some Tax Levies: The bankruptcy law code allows some protection to the government and makes it a little more difficult to wipe out tax liabilities. An automatic stay can protect you from some IRS processes, including a tax levy. It is much easier if the tax levy is over three years. IRS has authority under the tax code to require filing of tax returns, assess a tax liability and require payment of the assessment. It is very difficult to wipe it off is it is a recent tax liability./p
pStop Utility Shut-Off: Automatic stay will require the utility company to reconnect your home to their utilities if they shut it off because of non payment. It is very inconvenient for a utility company to disconnect your gas and electric at night. However, the utility company may be allowed turn the light off after requiring you to make a deposit within a reasonable time and your refusal to comply./p
pStop Pay Day Loans, Bad Credit and improve your credit: The filing of a bankruptcy and issuing of automatic stay starts the rebuilding process for a better credit. At this time your credit score is already too low. All these prior bad debts will possibly be liquidated and wiped off from your record after you properly filed bankruptcy. You may now start with securing secured bank credit card and purchasing on credit with local department stores./p
pPlease call attorney Geoffrey Nwosu at our San Jose California Bankruptcy debt relief law office at 408-912-5983 to schedule a Free Initial bankruptcy Consultation./p
pHow long will Automatic Stay remain in effect after filing for debt relief?/p
pThe automatic stay remains in effect upon filling of bankruptcy until one of the following occurs:/p
ul
liUntil a judge lifts the stay at the request of a creditor to Release Staynbsp; /li
liThe debtor gets a discharge from bankruptcy /li
liThe debtor reaffirms the particular asset like car or home/li
liAsset or property is no longer property of the estate.nbsp;/li
/ul
pWhat are the consequences for violating the automatic stay?/p
pJudges take violation of automatic stay very seriously. Some courts confine the right to damages to individual debtors. Anyone who willfully violates the stay in the case of an individual is liable for actual damages caused by the violation and sometimes for punitive damages. Money damages are very appropriate. Debtorrsquo;s attorney may facilitate to make sure that actual notice gets to the lenders. Creditors are prohibited from taking actions that will violate the stay or face penalty and fees./p
pItems not Covered by the Automatic Stay: Automatic Stay does not apply to all debt obligations that a debtor has to a creditor. The automatic stay does not stop the following:/p
pCriminal Proceedings: The automatic stay will not stop a criminal action like driving under the influence, drug charges or another other criminal from proceeding. The filing of bankruptcy cannot prevent the state from prosecuting you or imposing fines and court costs to offenders just because they filed for bankruptcy./p
pActions for a family support order or the modification of such order for Child Support Actions: The automatic stay is not able to stop a lawsuit against you seeking to establish paternity or to establish, modify, or collect child support or maintenance. The law here tries to see what is in the best interest of the child./p
pCall the bankruptcy law office of Geoffrey Nwosu for free Consultation at 408-912-5983 to find out how Automatic Stay will help you./p
pGeoffrey Nwosu San Jose ca bankruptcy attorney amp; lawyer Disclaimer: California bankruptcy attorney amp; lawyer, chapter 7 bankruptcy, chapter 13 bankruptcy, personal amp; consumer bankruptcy, foreclosure or other bankruptcy debt relief laws information presented at this site should neither be considered as a legal advise nor formation of attorney, lawyer or counsel relationship. Do not take any information presented here as a promise or guarantee. Contact our San Jose Oakland San Francisco bankruptcy amp; debt relief law firm to discuss your legal options on your particular case with our attorneys amp; lawyers. We do not take cases from outside the state of California/p