What Is the Automatic Stay?
A bankruptcy case automatically triggers an automatic stay that is issued by the court. This court order prohibits creditors from taking any collection actions against you. The automatic stay will remain in effect until the bankruptcy court lifts it or your case is discharged.
You must file for bankruptcy within the time frame set by the Bankruptcy Code. If you do not file within this time frame, you will not receive the automatic stay.
The automatic stay may also be lifted if you do not file your bankruptcy paperwork correctly. If a creditor is found to have violated the automatic stay, they may face criminal penalties. If you are aware of any creditor violating the automatic stay, you should report them to the bankruptcy court.
Do not ignore creditor phone calls after filing for bankruptcy. Call RHM LAW LLP at (213) 344-0043 for a 30-min. risk-free consultation with a Los Angeles automatic stay attorney. You may also reach out online. We Speak English, Spanish and Farsi.
What Is the Purpose of the Automatic Stay?
The automatic stay is intended to give you time to reorganize your finances without being harassed by creditors. It also gives you time to develop a plan for your bankruptcy case and for the reorganization of your finances.
When Does the Automatic Stay Take Effect?
When you file for bankruptcy, an automatic injunction, known as the "Automatic Stay," comes into play. This legal mechanism typically halts creditors from pursuing most collection activities without the need for additional court orders.
What Is the Automatic Stay Good For?
The automatic stay will protect you from collection actions by your creditors. It will also stop foreclosure on your home and repossession of your car.
Once the automatic stay is in place, you will be able to rest easy knowing that you will not be harassed by creditors while you reorganize your finances. You will also have time to develop a plan for your bankruptcy case, as well as for the reorganization of your finances.
How Long Does the Automatic Stay Last?
The automatic stay will remain in effect until the bankruptcy court lifts it or you receive a discharge in bankruptcy. If your case is still pending, the automatic stay will remain in effect until your case is closed.
What Happens If a Creditor Violates the Automatic Stay?
If a creditor violates the automatic stay, they may face criminal penalties. If you are aware of any creditor violating the automatic stay, you should report them to the bankruptcy court.
Contact Our Los Angeles Automatic Stay Lawyers
RHM LAW LLP can help you develop a plan for your bankruptcy case and for the reorganization of your finances. We can also help you protect yourself from creditors while you reorganize your finances and reorganize your finances. We have been helping clients in Encino, Los Angeles, and beyond for many years.
To learn more about automatic stay and bankruptcy, reach out to our automatic stay attorneys in Los Angeles (213) 344-0043 for a 30-minute risk-free consultation. We speak English, Spanish, and Farsi.
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