The Automatic Stay
The automatic stay protects you from collection efforts by creditors, and it goes into effect the moment a bankruptcy case is filed. To some, it means that they’ll have a chance to save their home from foreclosure. To others, it means that their wage garnishment has ended, and they will receive their first full paycheck in weeks.
The automatic stay prohibits collection calls at work, or at home. It is the first benefit of filing bankruptcy, and a long stride toward a fresh start, free of financial worries.
The automatic stay goes into effect immediately upon your bankruptcy filing. This means your creditors are prohibited from contacting you, and that all collection activity must stop, which includes lawsuits, wage garnishments or any other attempt to collect on a debt.
If any of these creditors do contact you, simply tell them you have filed bankruptcy, and give them your case number along with our contact information. We’ll make sure they never contact you again.
Some debts and court proceedings are excluded from the automatic stay. For example, you must continue to pay alimony and child support after filing for bankruptcy. You must also continue payments on your secured debts (such as a car loan) if you intend to keep the collateral for that loan.
The automatic stay does not stop most family law, criminal or tax proceedings.
Your lender may ask the Court to lift the automatic stay if you are behind on your secured loan payments, such as your home loan or car loan. There are many defenses available when a creditor moves for relief from stay, including your ability to provide protection of the lender’s interests – such as by resuming monthly payments T
he attorneys at Davidson Backman Medeiros PLLC have decades of experience in successfully defending against creditors’ attempts to lift the automatic stay. Even when the stay is lifted, you may lose your collateral, but the debt will still be discharged.
While the automatic stay does stop collection efforts, you’ll eventually need to discharge the debt, surrender the collateral to the creditor, or continue paying on non-dischargeable debts or continuing claims.
When we meet to discuss your case, we’ll be sure you’re fully informed about how to proceed. Together, we’ll create the right plan for your specific circumstances and ensure you get the freshest start possible.
Davidson Backman Medeiros PLLC Can Help
Davidson Backman Medeiros PLLC helps individuals file for bankruptcy under Chapter 7 and Chapter 13 in Spokane, Seattle, and throughout Washington and Idaho. Davidson Backman Medeiros PLLC is a debt relief agency under federal law.