Bankruptcy and the Automatic Stay

Besides eliminating your qualifying debt, a benefit you get from filing bankruptcy is the automatic stay. This court order goes into effect as soon as your file your petition with the court. The automatic stay stops all collection attempts against you. Creditors must go through the bankruptcy court regarding any debt that you owe.

How Long

The automatic stay will remain effective until your case is completed, or in a Chapter 13 bankruptcy when the judge confirmes your plan.

Motion to Lift the Stay

Creditors can file a motion with the court to have the automatic stay lifted. If your creditor can show the property is in danger of harm, they may be allowed to continue collection attempts against you.

Some of the actions that will stop due to the automatic stay:

• Harassing phone calls by debt collectors
• Threatening letters and emails
• Reporting to credit bureaus
• Evictions or foreclosures
• Lawsuits
• Vehicle repossession
• Public benefits seeking overpayments
• Liens and levies
• Utility shut-off

If you are receiving harassing phone calls from your creditors and you are overwhelmed in debt, contact a Hidalgo County bankruptcy attorney to find out how you can get financial relief.