Filing for bankruptcy can be a lengthy and tedious process filled with piles of paperwork and significant waiting times. Luckily for those filing, lawmakers do recognize the time consuming part of bankruptcy and the stakes involved in the process. When creditors are breathing down your neck, you may feel as though your bankruptcy filing won't be processed quickly enough.
That is why an automatic stay goes into effect the moment a person files.
An automatic stay may protect the filer from any further financial penalties or collection actions during this time. At the Law Office of Marilyn D. Garner, we've seen how automatic stays have prevented countless lives from spiraling out of control. Still, it's important to understand the reach and limits of an automatic stay and how some creditors may attempt to work around it.
If you face the possibility of bankruptcy and want to learn how an automatic stay can help your situation, call today at (817) 381-9292.
An automatic stay freezes the actions of creditors and other entities working to penalize or repossess any property or assets from an individual that is failing to make payments. They, in this way, acts as a bit of a white flag and are legally recognized as a reprieve.
It's important to note that there are limits to automatic stay. It does not protect against child or spousal support, any criminal fees or proceedings, or a number of tax responsibilities.
In some cases, creditors may be able to lift on an automatic stay if they can argue to the court that the stay is preventing the inevitable or that a protected property is now beyond the means of recovery of the filer. This is common in real estate issues, which is why having trusted legal support is crucial. These creditor actions can jeopardize your bankruptcy. You need aggressive representation by your side during this time, so do not hesitate to contact us.
Call the Law Office of Marilyn D. Garner today at (817) 381-9292.