One bit of
peace of mind my bankruptcy clients welcome as much as a fresh financial start
is the Automatic Stay. Immediately upon Wynn at Law’s filing of your bankruptcy, creditors generally cannot
continue the collection process. It’s quiet time at dinner time since the
persistent calls usually come to a screeching halt. When you file, Attorney
Shannon Wynn becomes the contact person for the creditor.
The stay halts all attempts by creditors to
collect your debts, including existing wage
garnishments, lawsuits, and car repossessions. And of course the
calls and letters.
Not all debts
are subject to this provision. For example, child support orders and arrears
are not stayed and the state can continue to attempt collection. Also, if a
creditor believes he or she has sufficient grounds to continue, the creditor
may petition the court to lift the Automatic Stay. Rare, but it happens.
It isn’t to imply
they won’t get a share of your assets. Their share is a proportion. To simplify it, let’s say one third of your
debt is owed one creditor: Then one third of your assets are owed them. Not
more if they keep after you with more letters and calls. Once the automatic
stay is in effect, that creditor is likely to receive less than the full amount
they are owed if anything at all. Plus, creditors know you can file suit
against THEM if they continue to try to collect after a bankruptcy filing.
That, too, is rare, but it happens.
When isn’t there
an Automatic Stay? If you’ve had Wynn at
Law, LLC or another firm file a bankruptcy for you in the prior year, you may
not get the Automatic Stay. With residential leases, a landlord can continue an
eviction if they already obtained a judgment. Even after the bankruptcy
filing, a landlord could start an eviction if he or
she can demonstrate that the home/condo/apartment is being damaged.
*The content and
material in this original post is for informational purposes only and does not
constitute legal advice.
Photo: Sonar. Used with permission.
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