Our bankruptcy law firm often gets the question..”What is an automatic stay and will it stop foreclosure proceedings?”
Let’s assume you are receiving letters from your mortgage company threatening to foreclose on your home. From the moment you file for bankruptcy protection, your creditor must stop their foreclosure and collection efforts. Yes! Their calls to your job, threatening telephone messages, and weekly correspondence to your home MUST end.
Why? The automatic stay provision of the U.S. Bankruptcy Code protects debtors from creditors upon the filing of a bankruptcy petition. To automatically “stay” the proceedings means to stop the collection efforts of your creditors. While the automatic stay remains in effect, creditors cannot file any lawsuits against you for unpaid debts, and cannot move to have any of your assets taken, or paycheck garnished.
If you have additional questions regarding the complete bankruptcy process, please schedule a consultation with an experienced Chapter 7, 11 and 13 bankruptcy attorney today.
