Before you file bankruptcy, creditors often call, harass, and even repossess your property. The second you file bankruptcy a creditor must cease all actions against a debtor pending the “Automatic Stay.” The Automatic Stay is like a fictitious concrete barrier between you and the creditor. If you like football, it’s like an offensive line that never gives up a sack, and you’re the quarterback. There are only a few exceptions that allow a creditor to get around the Automatic Stay, but they are limited (for more on Stay Relief, read the posting, What is Stay Relief?).
The Automatic Stay is guaranteed to last a minimum of 90 days from when you file bankruptcy, sometimes it can last much longer. The reason for the Automatic Stay is to allow the bankruptcy process to work. Because the Automatic Stay is in place, debtors can work with their attorney, the trustee, the court, and even creditors to optimize the process. The automatic stay provides a debtor with a temporary relief while the debtor awaits a permanent relief at the end of the case. If you would like to learn how the automatic stay can help your situation, just give us a call.