Evergreen Park Bankruptcy Attorney

An Evergreen Park bankruptcy attorney describes the automatic stay in bankruptcy. When a debtor files a bankruptcy, whether it be a Chapter 7 or a Chapter 13, what happens is a relief from creditors which is called the automatic stay, which is a provision in the bankruptcy code that provides protection against creditors in the sense of protection of a creditor trying to collect money that is owed to them in any manner.

So what happens in a bankruptcy is that a bankruptcy case is filed and on the day of the filing of the bankruptcy, the automatic stay comes into effect. Once that automatic stay is in effect, the debtor will be able to go on about his day while he is in the bankruptcy process and not worry about harassment’s, communications, and any collection efforts from creditors. The automatic stay is imposed on all creditors and if a creditor wants to get out of the protection you have, they will have to go to court and file a motion to lift the automatic stay. Generally speaking, the automatic stay is not going to be attempted to be lifted by any creditors other than possibly a mortgage company.

The automatic stay is a powerful, powerful tool to stop garnishments, to stop the bank accounts that are frozen, to stop any pending foreclosure sales or property tax sales or any kind of lawsuits that would occur in an attempt to collect money for a debt that is owed to a creditor. So the automatic stay is a powerful, powerful tool and it is the relief that debtors are looking for. Many people come in and they are being garnished and they have more garnishments coming in from different creditors or they are trying to stop a foreclosure sale and they are trying to work with their bank and stop the foreclosure or the threatening of the repossession of a vehicle or they are trying to stop or unfreeze bank accounts that had been frozen. So these are all the types of things that bankruptcy will help and stop from collectors trying to collect. To get this protection, you have to first claim bankruptcy.

The automatic stay is a powerful, powerful tool and it should be one of the main reasons for a debtor to file bankruptcy is the protection that you have and received. And not only is there protection from creditors, if a creditor violates an automatic stay order, then they are in violation of a court order which can in turn be sanctioned, the creditors can be sanctioned for those actions; sanctioned in a monetary sense. So every time they violate the automatic stay, it is a separate sanctionthat can be proven in court and a violation for a certain amount of money could be awarded to the debtor who is the victim of harassment. Your local bankruptcy lawyer can help bring the proper motion for redress before the court.

Posted in Illinois Bankruptcy |