The “automatic stay” is a powerful aspect of filing for bankruptcy. It acts as an immediate shield, protecting you from creditors the moment your bankruptcy case is initiated. This protection typically lasts for the duration of your case, providing relief from various forms of creditor pressure. It halts actions that diminish your income, such as wage garnishment, and prevents imminent threats to your property, including vehicle repossession and home foreclosure. Additionally, it puts an end to harassing creditor calls and collection letters.
Losing the Automatic Stay: How and Why?
There are two primary ways you might lose the automatic stay:
- Creditor’s Motion for Relief: A creditor may request the court to lift the automatic stay regarding their debt, allowing them to proceed with collateral possession. This is more common among
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