How An Automatic Stay Works

Assistance from a San Antonio Bankruptcy Lawyer

When you file for bankruptcy, you get to enjoy the powerful benefit of the automatic stay. This is an injunction that places an immediately hold on various types of collections that are carried out by creditors. The injunction lasts for the duration of the bankruptcy process, giving the debtor the relief that is needed while he or she gets back on financial track.

Some of the actions that normally come to a halt with an automatic stay include:

  • Wage garnishment
  • Vehicle repossessions
  • Creditor lawsuits
  • Foreclosure proceedings
  • Bank levies
  • Calls from creditors asking for payment

As long as the bankruptcy is carried out successfully, the debtor should be able to properly deal with the problem debt (either through a discharge or through repayment) by the time the automatic stay is lifted. Debtors should, however, be on their guard for creditors who may be able to override the automatic stay due to certain technicalities. This is known as “lifting” the automatic stay. For example, mortgage lenders often seek lifts of automatic stays so they can move forward with foreclosure proceedings. Because of complexities such as this one, it is vital that debtors seek the counsel of a trained attorney before filing for bankruptcy.

Contact Rick Flume, Bankruptcy Attorney

As a San Antonio bankruptcy attorney with well over than a decade of experience, I have the legal insight that is needed to help you properly proceed with your bankruptcy filing. I can thoroughly assess your financial situation and help you fully prepare yourself for any complications that may arise. I want to help you put an immediate stop to the financially crippling collection actions that your creditors are using against you.

Contact my firm today and take advantage of a free case evaluation. The sooner you call me, the sooner I can begin working with you to rebuild your financial security!