What is the Chapter 7 and Chapter 13 bankruptcy Automatic Stay?
Filing for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy gives you the bankruptcy automatic stay. The “stay” is an order from the court prohibiting certain action. The bankruptcy automatic stay stops lawsuits, garnishments, levies, and other collection actions. The stay is “automatic” because you usually don’t have to do anything to turn it on.
The bankruptcy automatic stay is the beginning of the relief you sought. When you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, this stay stops collection efforts. If you were being garnished before filing, for example, that garnishment must stop. The same is true for foreclosures, repossessions, and levies. Your creditors must stop calling you.
Creditors sometimes can get relief from the bankruptcy automatic stay. When a creditor gets relief, that means the stay no longer applies to a particular debt. If you are behind on car payments, the creditor may want relief from the stay. That way, the creditor can repossess the car. The court will allow this in circumstances like a car or house, but not for credit card or medical debts.
In some cases, the bankruptcy automatic stay is not “automatic.” If you have filed bankruptcy numerous times before, your bankruptcy attorney will have to ask the court to impose the stay. This is designed to prevent people from filing bankruptcy repeatedly.
Your bankruptcy attorney may have to enforce the bankruptcy automatic stay. In rare circumstances, a creditor will take action against you after you filed bankruptcy. Since the Chapter 7 and Chapter 13 bankruptcy filing both come with a bankruptcy automatic stay, your bankruptcy attorney can enforce the stay. Sometimes, you can be awarded money damages for violations.
Contact a St. Louis bankruptcy lawyer today! Get relief under the bankruptcy automatic stay.