What Is an Automatic Stay?
Answers from an Arlington Bankruptcy Attorney
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.
What Does an Automatic Stay Protect?
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.
An automatic stay can halt the following:
- Utility disconnections or further fees
- Recollection of any public benefit over payments
- Wage garnishments (usually if filer receives more than one wage)
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.
When You Need to Call on Our Firm - (817) 381-9292
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.
Whether you are filing for bankruptcy as a business or consumer, we are ready to help.
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She made sure we walked away with information we could use. We highly recommend her to anyone that’s in need of fresh new knowledge to help their situation.- Alice C.
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They listened to my concerns and what brought me there and explained everything to me. They recommended the best path to take for my situation and guided me to a starting point.- Stefanie J.
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We can help you understand the processes for filing for bankruptcy and making an estate plan.