Understanding the Automatic Stay
When a person files for bankruptcy, he or she is entitled to certain rights and protections, especially from harassing creditors. Before filing for bankruptcy, you might have experienced harassment from creditors like phone calls, emails, letters, and personal visits. However, through what is called the “automatic stay,” these harassing creditors are legally prevented from taking action against you during bankruptcy. Thanks to the automatic stay, debtors can work through their debts without facing legal action by creditors, which can remove a load of stress from one’s shoulders.
How the Automatic Stay Works
The automatic stay is an important benefit of the bankruptcy process, as it goes into effect immediately upon the finalization of one’s bankruptcy filing. At its most basic, the automatic stay prevents creditors from taking action against debtors going through bankruptcy. What this means is that creditors cannot perform the following actions:
- Engage in a foreclosure sale on your home
- Attempt to repossess your property
- Try to enforce a lien
- Try to garnish your wages at work
- Contact you by email or phone
- Pursue legal action against you
In some cases, however, the court may grant creditors’ requests to lift the automatic stay or allow exemptions to this protection. This is why it can be important to enlist the help of a knowledgeable lawyer who can protect your rights and interests as a debtor.
If you or someone you know is going through bankruptcy and you have questions about the protections an automatic stay can offer you, contact the qualified attorneys of the Russell Van Beustring P.C., today by calling 713-973-6650 to learn more about the many benefits of bankruptcy.