As soon as your bankruptcy attorney files your bankruptcy petition, an automatic stay goes into effect. During the automatic stay, your creditors are prohibited from taking collections actions against you. While it is in effect, creditors are barred from engaging in collections calls, garnishments or levies, repossessions, lawsuits, and foreclosures. However, as your bankruptcy lawyer can advise you, there are some limitations on the automatic stay.
For many debtors, the automatic stay remains in effect for the duration of the bankruptcy case. However, creditors may request that the judge lift the automatic stay. Additionally, debtors face limitations if they have had a prior bankruptcy case dismissed within one year of filing the next petition. In this situation, the automatic stay is limited to 30 days. There is no automatic stay for additional bankruptcy petitions filed within one year.
At Cutler & Associates, Ltd., our bankruptcy attorneys are focused on helping our clients get the financial relief they need, both on an immediate and long-term basis.