Designed by law to protect creditors, the bankruptcy automatic stay is one of the biggest benefits to consumers within the Bankruptcy Code. This protection ensures creditors cannot contact a consumer once bankruptcy has been filed. This includes preventing creditors from calling, sending letters, and other collection attempts. The bankruptcy automatic stay even stops garnishments and foreclosure sales. For more information about the stay or bankruptcy contact a bankruptcy lawyer in Tampa to schedule a consultation
Policy of the Bankruptcy Automatic Stay
Likely based on the legal tradition that represented parties cannot be contacted directly by the opposing party, bankruptcy law ensures that only a judge, or The Court, can lift the automatic stay. Thus, the entire time a legitimate bankruptcy proceeding is going on, your debtors can no longer call your phone, send you bills or notices, or otherwise contact you regarding your outstanding debt. Further, the automatic stay should remain in effect throughout the case. Only if a creditor obtains relief from the stay by a judge can collection actions resume.
Benefits of the Bankruptcy Automatic Stay
The benefit of the automatic stay is what entices many consumers to file for bankruptcy. For instance, if your home is scheduled for a foreclosure sale the bankruptcy automatic stay will cancel the sale. Additionally, the bankruptcy automatic stay can put an immediate end to bank and wage garnishments. However, filing for bankruptcy is an important decision and one that should not be undertaken without consulting an attorney. You’ll need to determine which chapter of the bankruptcy code is appropriate for you. Additionally, you should consider whether filing for bankruptcy will put any of your assets at risk.
Bankruptcy Law Firm
At Florida Law Advisers, P.A., we understand how important the bankruptcy automatic stay is and can help you. We work hard to make the process as easy as possible for our clients. When you hire Florida Law Advisers, P.A., you have an experienced bankruptcy lawyer by your side throughout every phase of the bankruptcy process. We will help ensure your rights are protected and help you receive the utmost relief bankruptcy can offer. To schedule a free consultation with a Tampa bankruptcy lawyer at our firm call, email, or fill out an online inquiry on our website today.