The automatic stay is a powerful bankruptcy protection that immediately stops nearly all creditor action against a debtor. The automatic stay is a temporary injunction against debt collection and is meant to give you a “breathing spell” from your creditors. The automatic stay allows you to force a repayment plan on your creditors through Chapter 13, or simply to be relieved of the financial pressures that drove you into bankruptcy by filing Chapter 7.
This protection is immediate and “automatic” upon filing a bankruptcy petition – no hearing is necessary. The stay is a legal injunction ordered by the bankruptcy court that prohibits a creditor with a claim that arose before the start of the bankruptcy case from taking many actions, including:
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contacting the you to request payment (stops collection calls)
John and Patricia Longo, Phoenix, Arizona said“After being mishandled and ignored by several other attorneys, we had the good fortune to find Mr. Volin. The world would certainly be a better place if everyone had the ethics and service Mr. Volin does. Thank you Mr. Volin for your wonderful service.”
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starting or continuing a lawsuit against you (stops lawsuits)
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enforcing a judgment against (stops wage garnishments)
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repossessing personal property or foreclosing on real estate (stops repossessions and foreclosure)
While the automatic stay is immediate, it is not permanent. The stay can be contested by a creditor and lifted by the bankruptcy court after notice and a hearing. There are also a few exceptions to the automatic stay protections, for instance: the automatic stay does not prevent criminal prosecution. Likewise the automatic stay does not stop lawsuits to establish or modify alimony, maintenance, or support.
People that file for bankruptcy receive this powerful legal injunction against creditor actions. However, the automatic stay is just one weapon in your bankruptcy attorney’s arsenal. We can help you use the power of the bankruptcy laws to help you protect your family’s future financial health. If you are struggling with debt, call us at 480-478-0323 and learn how the federal bankruptcy laws can help you.
The Arizona Bankruptcy Law Office of John Joseph Volin, P.C. has been helping Arizona families throughout the Phoenix area since 1986. We are located in the Mesa Tempe Chandler area and offer a free appointment for you to learn how the bankruptcy laws apply to your situation.
