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Posted On: June 30, 2010 by Scott Sagaria

What is an automatic stay?

A San Francisco bankruptcy attorney address the Automatic Stay

What is an automatic stay? When you file a bankruptcy petition an automatic stay goes into effect. The purpose of the automatic stay is to immediately halt any action against the debtor. The automatic stay stops lawsuits, collection calls, wage garnishment, home foreclosures, and other adverse proceedings.

Is judicial action needed in order to make the stay official?No. The filing of the bankruptcy petition automatically brings the stay into effect. There is no additional judicial action needed.

Can a creditor apply to have relief from the automatic stay?Yes. Creditors can apply to the court for a relief from the automatic stay. This generally occurs when the debtor is behind on payments and the property is not essential to the debtor’s reorganization. If the debtor wishes to negotiate with a creditor about the future of collateral, such as a home, the debtor can allow the creditor to engage directly in discussions.

If my debts are discharged can creditors still collect from me?If you receive a discharge from the bankruptcy court all of your previous debts and liabilities will be forgiven. There is no future obligation to pay those debts and creditors cannot try and collect on them. You are free to still pay whatever debts you previously owed but there is no legal requirement that you do so and creditors have no cause of action against you to collect the old debts.

If you have questions regarding bankruptcy in San Francisco or bankruptcy in the greater Bay Area please contact our San Francisco Bankruptcy Attorneys at (415) 946-8882 for a free consultation or visit www.bkanswers.com and we can connect you with one of our experienced San Francisco Bankruptcy Attorneys. After you have spoken with one of our Bay Area bankruptcy attorneys, we can schedule you for a free face to face appointment in an office location nearest you. Our team of Bankruptcy Lawyers, Bankruptcy Customer Care Specialists and Bankuptcy staff supporting San Francisco and Bay Area consumers in debt can assist you with all aspects of your bankruptcy or bankruptcy litigation case. If you have questions about filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, or would like to learn more about bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. we can help! We have bankruptcy attorneys located throughout California and Oregon who can assist you with all of your debt resolution questions. Please feel free to complete our free online bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy. We look forward to hearing from you, San Francisco Bay Area!

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Posted In: Automatic Stay , Creditors and Debt , Debt

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