When it comes to bankruptcy, there is a magic phrase that those filing like to hear. That is the automatic stay. But what is the automatic stay and how does it help you when filing for bankruptcy? Jones Law Firm has the answers.
The automatic stay is the United States bankruptcy provision which temporarily prevents creditors, government entities, and collection agencies from pursuing debtors for the finances owed.
The moment you file for bankruptcy, you are protected and the automatic stay goes into effect. However, there are some things that the automatic stay does not protect against. These unprotected actions include tax audits, criminal proceedings, support payments, etc.
When you file for bankruptcy, you are afforded certain protections under the automatic stay. While these won’t last forever, they do work to protect you from actions including:
While these actions will temporarily be stopped when you file for bankruptcy, there are certain things that are not protected under the automatic stay.
While the automatic stay protects you against quite a few actions, there are certain things it cannot stop from happening. Those events include:
So long as your bankruptcy filing was made in good faith, the automatic stay remains in effect as long as the bankruptcy does.
This length of time depends on the type of bankruptcy you file–either Chapter 7 or Chapter 13–and how quickly the process is worked through.
It is important to remember that if you have filed bankruptcy in the last year, your automatic stay is only in effect for 30 days. And, if you’ve filed for bankruptcy twice in the last year, you won’t get an automatic stay at all.
Stop creditors from calling by filing a bankruptcy claim with the help of The Jones Law Firm today.