What is an Automatic Stay?

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To be overloaded with debt and hit by constant creditor harassment can be a discouraging, embarrassing experience, and extremely stressful. To have your car repossessed, your wages garnished, or lawsuits filed against you makes your situation even more difficult. When you file bankruptcy, an automatic stay immediately goes into effect.

It prohibits all collection efforts by your creditors, including lawsuits, repossession, garnishment, and phone calls. If you are in extreme financial difficulty, it is in your best interest to consult with experienced Dupage County bankruptcy attorney. At the Law Office of Joseph P. Doyle, we will work diligently for the relief you need in an overwhelming financial situation.

Automatic Stay: Freezing the Situation

Whether you file Chapter 7 or Chapter 13, the Automatic Stay immediately prevents creditors from taking action against you until a new financial structure can be established. In a Chapter 7, it generally remains in effect until a discharge is issued by the bankruptcy clerk, releasing you from your debt. This could occur in as little as 6 months.

In a Chapter 13, it remains in effect for the length of the repayment plan, usually from 3 to 5 years. A creditor can file a motion with the court to have the stay lifted and proceed with a lawsuit. It is important to be represented by a knowledgeable legal professional. Our experienced Dupage County bankruptcy lawyers will work diligently to safeguard your interests and protect you throughout the process.

Violations of the Automatic Stay

The automatic stay acts as an injunction of the court. Any creditor who knowingly violates the stay is in contempt of court and subject to sanctions. After you file bankruptcy, if any creditor continues collection efforts, you should let your attorney know. You may have a case against that creditor. Contact our law firm for professional assistance with every aspect of bankruptcy.