When a bankruptcy petition is filed, you are protected from further effort to collect by creditors/debt collectors — it stops immediately. This applies to:
- Letters
- Phone calls
- Liens/garnishments
- Repossession
- Foreclosure
sent from collection agencies, repossession companies and other third parties.
The automatic stay is an injunction that's used to give debtors temporary relief from financial problems, allowing for an opportunity to deal with them.
If creditors ignore the automatic stay by contacting you or failing to halt legal actions, a federal bankruptcy judge can hold them in contempt of court. Intentional violations are treated with the utmost seriousness, and if creditors don't stop collection activities, you can provide your case number and attorney contact information.
While it provides relief, an automatic stay is not permanent. If you do not keep up with obligatory payments after bankruptcy filing such as mortgage payments or auto loan payments, a bank can resume repossession or foreclosure proceedings.
Nassau County Debt Relief Attorney
It is my goal to help you seek immediate protection from creditors by effectively utilizing the automatic stay. From there, depending on whether we pursue a Chapter 7 or Chapter 13 bankruptcy, we can work to discharge or reorganize your debts.
I understand how stressful creditor harassment can be, and I am committed to using the automatic stay as a reprieve from this while we work toward a solution that takes into account your unique circumstances.
To schedule a free initial consultation to discuss the automatic stay and bankruptcy with New York lawyer Scott R. Schneider, call 516-433-1555 or e-mail him here.
I am a federally designated debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.
