Chicago Bankruptcy Alphabet: A is for Automatic Stay

Posted January 5th, 2012 in Blog and tagged , , , by admin

When you file a Bankruptcy, generally you do so to stop your creditors on a number of fronts.  If you are being harassed, garnished, or foreclosed upon, a Bankruptcy affords you some level of control over the behavior of your creditors.  The reason is the Automatic Stay, and every should be able to discuss its power with you. Lindsey Law Office focuses its practice solely in the area of Chicago Bankruptcy , and can provide you with top-tier representation.

When do I get the Automatic Stay in a Bankruptcy?

The Automatic Stay operates like an injunction or restraining order against your creditors.  When you file a Bankruptcy in Chicago, an Automatic Stay goes into effect for at least 30 days.  As a result your creditors may not attempt to collect their debts with you.  This is fairly wide-ranging, and provides protections you probably wouldn’t have imagined were possible before speaking with your Bankruptcy Attorney.

What Protections does the Automatic Stay Provide to Debtors in Chicago?

The first thing that most of my clients notice is that creditors stop contacting and harassing them.  That is because the Automatic Stay in a Bankruptcy specifically deters creditors from collecting their debts, and contacting you is generally done for that purpose.  If a creditor were to continue to contact you after they have received the notification that you filed a Bankruptcy, then they could be penalized by the Chicago Bankruptcy Court.

Also, creditors must stop other legal actions that are related to collecting their debts with you.  This can include garnishments, repossessions, foreclosures, and lawsuits for the debt.  As you can see, this is a powerful tool.  Lindsey Law Office provides you with a Chicago Bankruptcy Attorney that knows the power of the Automatic Stay and is willing to enforce it when your creditors misbehave.

When is the Automatic Stay not so Automatic in a Bankruptcy?

It’s important to note that the Automatic Stay is only in effect for 30 days.  It automatically extends in most Bankruptcy cases in Chicago.  However, there are cases that arise in which your Bankruptcy Attorney must manually seek to have the Stay extended beyond 30 days.  If you have filed Bankruptcy in Chicago during the last year, and the case was dismissed for various reasons, then the stay may not automatically extend.  As a result, I always recommend that you seek the assistance of a Chicago Bankruptcy Attorney to address the situation.  Your Attorney will most likely be able to get the Automatic Stay extended as long as the conditions are right.

A Chicago Bankruptcy Attorney Can Help You Obtain the Power of the Automatic Stay

If your creditors are harassing you, garnishing, repossessing, or foreclosing on you, then it’s time to call a Chicago Bankruptcy Attorney who can help you get your life back.  Contact Lindsey Law Office today for your completely free consultation and case evaluation.

Photo: cheesy42 /flickr

Other Lawyers Helping with the Bankruptcy Alphabet

8 Responses so far.

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