Automatic Stay
There are many reasons why a person may decide to file for bankruptcy. One of the most compelling arguments for this form of debt resolution is the concept of automatic stay. Automatic stay is a hold placed on all actions currently being taken against the debtor by the owed creditors or government agencies. If you are facing eviction, foreclosure, or being found in contempt for failing to make payments on your utilities or child support, then automatic stay will protect you from these financial dangers.
How Automatic Stay Can Protect You
The enforcement of automatic stay in your situation will protect you against the following hazards:
- Foreclosure
- Eviction
- Disconnection of your home utilities
- Recollection of overpaid public benefits (does not prevent termination of benefits)
Garnishments
When you file for bankruptcy, the automatic stay rule that accompanies this action will protect you and your family from these dangers.
How Creditors Violate Automatic Stay
There are certain actions that creditors are prohibited from taking when an automatic stay in enacted. Creditors cannot:
- Start a new lawsuit
- Continue pursuing an existing lawsuit
- Make collection calls
- Make repossessions
- Make foreclosure sales
- Enforce garnishments
If they do attempt any of the above actions, then they are in violation of the automatic stay.
Contact Us
If you would like to learn more about automatic stay, call the Austin bankruptcy lawyers of Slater, Kennon & Jameson, LLP today at 512-338-1100 to speak with one of our qualified attorneys.