The Automatic Stay
Perhaps the single greatest weapon that the Bankruptcy Code gives to Debtors is the Automatic Stay. With certain exceptions, the Automatic Stay goes into effect upon the filing of a Bankruptcy Case, and is a restraining order that prevents creditors from initiating or continuing any action to collect a debt or enforce rights against property owned by the Debtor. A creditor that takes any action to collect a pre-petition debt against the Debtor or property of the debtor could be subject to punishment by the Bankruptcy Court.
Simply by filing a Bankruptcy Case, you can stop most of your creditors from initiating or continuing lawsuits, sending harassing collection letters, or making annoying collection calls. The automatic stay stops most creditors from garnishing your wages, from recording judgment liens against your property, from repossessing property that you own, and trying to foreclose a mortgage against real estate that you own, while you are under the protection of the Bankruptcy Court.
Birmingham, Alabama Consumer Bankruptcy Attorneys
For a thorough explanation of the duration and scope of the Automatic Stay, contact one of the Personal Bankruptcy Lawyers at Over the Mountain Law Center today at 205-870-8480.
At Over the Mountain Law Center, LLC, our Birmingham Chapter 7 and Chapter 13 Attorneys will help you get over your mountain of debt.
Learn more about bankruptcy topics in our Frequently Asked Questions page.