When a debtor files a bankruptcy petition, an automatic stay is instantly created. An automatic stay is a court order that protects a debtor from his or her creditors. The law requires creditors stop any attempts to collect or recover any debt that arose prior to the filing date. However, the law allows some creditors to ask the court’s permission to continue their collection efforts. Other creditors can continue their collection proceedings without the court’s permission.
The automatic stay will stop foreclosure sales and repossessions. In addition, filing a bankruptcy petition by the debtor prevents creditors from being able to file a lawsuit against the debtor or reporting the debt to a credit bureau. If creditors have already filed a lawsuit against the debtor, they will not be able to proceed with it.
The automatic stay will expire when either the bankruptcy case is closed or dismissed or at the time the judge either grants or denies a discharge.
There are certain actions and proceedings that will not be stopped by the automatic stay. When you come to the Law Office of Yelena Kalika, she will analyze your case and explain how the automatic stay will protect your property and whether there are any proceedings that will not be affected.