What is the “Automatic Stay”?
The automatic stay keeps creditors away!
The filing of a bankruptcy case automatically stays (or stops) virtually all collection and other legal proceedings pending against the debtor. After a bankruptcy case is filed, the court mails a notice to all creditors ordering them to refrain from any further action against the debtor. Any creditor who intentionally violates the automatic stay may be held in contempt of court and may be liable to the debtor for damages. Criminal proceedings and actions to collect alimony, maintenance, or support from exempt property or property acquired by the debtor after their bankruptcy case was filed are not affected by the stay. The automatic stay also does not protect cosigners and guarantors of the debtor, and a creditor may continue to collect debts of the debtor from those persons after the debtor files a chapter 7 bankruptcy.
If you have questions about the automatic stay and how it will benefit you in your bankruptcy case, give me a call for a free in-office or telephone consultation today. Contact the Dayton Bankruptcy Attorney, David J. Smith, at (937) 318-1529, for your fresh start for a new tomorrow.