What is The Automatic Stay?
How Do I Stop The Harassing Phone Calls, Wage Garnishments, Eviction, Law Suits in State Court, Utility Turn-Off or Car Repossessions?
One of the most positive reasons to file a bankruptcy is to stop:
1. The harassing phone calls
2. Wage garnishments or frozen accounts
3. Evictions from apartments
4. Evictions from houses
5. Evictions from townhouses or condos
6. Repossession of a car
7. Law suits in State Courts
8. Utility turn-offs
If any of the above are imminent, the filing of a bankruptcy whether a 7 or 13, will stop them and give you the emotional and psychological relief you deserve.
Why, when you file a bankruptcy, the minute the case is filed, something called the "Automatic Stay" immediately comes into existence. The Automatic Stay is an extraordinarily powerful federal law - part of the Bankruptcy Code - which stops any creditor from doing anything to collect any money from you. Almost immediately the phone calls stop, wage garnishments cease, evictions are halted as are any law suits, cars are not taken and utilities are not turned off. The Automatic Stay freezes the situation until the bankruptcy system can analyze the situation and the new financial structure is worked out.
In a Chapter 7, the Automatic Stay is in effect the minute the case is filed and until the Discharge or permanent Automatic Stay is issued by the Bankruptcy Clerk. In a Chapter 13, the Automatic Stay is in effect until the discharge is issued which can be up to 5 years.
There are many nuances, rules, regulations, etc. that control and affect the Automatic Stay. Creditors can make motions to lift the stay and proceed with suits. You must have a true bankruptcy professional to watch over this process and explain it to you.
While the Automatic Stay is not effective until the bankruptcy is filed, retainers can, give some relief before the stay. This only partially helps but it can be significant until the full protection of the Automatic Stay comes into play when the case is filed.
At Illini Legal Services, we offer a free in person consultation to each of our clients. During your consultation, we will take the time to listen to your financial concerns and assess your case and individual situation. We have four locations to serve you. Contact us today for help!
Illini Legal Services is engaged in the private practice of law and is not a public legal aid agency. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.