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Automatic Stay in Bankruptcy
What is a bankruptcy automatic stay? The automatic stay stays all actions by creditors against the debtor. If your creditors are calling and harassing you, a provision in the bankruptcy code called the automatic stay will give you immediate relief. If you file for bankruptcy in Alabama, the automatic stay goes into effect immediately. The automatic stay forces creditors to stop taking legal action against you, and from even contacting you. In addition to preventing creditors from starting new efforts to collect, the automatic stay will stop collection actions that are already in process, including lawsuits, foreclosures, wage garnishment, evictions, repossession, and tax debt proceedings. If you have questions about the automatic stay and how bankruptcy law can help you, the bankruptcy attorneys at Ferguson & Ferguson can help. We can help you protect yourself against creditors and get started on the road to debt relief. Call 256-350-7200 or 256-534-3435. Calling our Huntsville and Decatur bankruptcy attorneys is the first step on the road to debt relief.
What Can the Automatic Stay Do for You?
If you want to get the creditors to quit calling, filing for bankruptcy and enacting the automatic stay is your best option. Once the automatic stay goes into effect, your creditors are not even allowed to call you, write you or harass you. Any communication will have to go through your bankruptcy attorney. If you file bankruptcy, and your creditors try to contact you, you can tell them to call us. We will deal with the creditors.
In most situations, the automatic stay will:
- Stop foreclosures
- Stop repossessions
- Stop wage garnishments
- Stop creditor lawsuits
- Stop creditor harassment
- Stop IRS collection activity
Automatic Stay Limits
In most cases, the automatic stay remains in effect for the duration of the bankruptcy case. However, there are situations in which the automatic stay is limited or not enforced at all:
- If you have filed for bankruptcy in the last year, and your case was dismissed, the automatic stay will only last for 30 days.
- If you have had more than one bankruptcy dismissed in the past year, it will not go into effect at all, unless you take the proper steps to protect you and your estate.
Contact Ferguson & Ferguson Now
For a free initial consultation about filing for bankruptcy with Ferguson & Ferguson, call 256-534-3435 now. We understand the bankruptcy laws and we are here to help.
Huntsville Office Location:
303 Williams Avenue SW
Suite 321
Huntsville, AL 35801
Decatur Office Location:
211 Oak Street NE
Decatur, AL 35601