The Bankruptcy Automatic Stay
The Bankruptcy Automatic Stay is a court order that protects you from all kinds of debt collection efforts
What is a the Automatic Stay?
The automatic stay is an automatic court order entered when a debtor files bankruptcy. The order states clearly that any attempts to a collect a debt are suspended. If a creditor violates the automatic stay they are subject to penalties.
The automatic stay acts on almost any attempt to collect a debt. This means that lawsuits, garnishments, repossessions, foreclosures, and phone calls are stopped. For example if you have been sued in Elizabethton and a summons has been served on you to appear in court in Carter County, filing a bankruptcy will stop the lawsuit and suspend any court hearing. This also applies to ongoing court proceedings or garnishments.
There are a number of exceptions to the automatic stay, however. The automatic stay does not apply to criminal or divorce proceedings and similar proceedings. Filing a Chapter 7 or Chapter 13 bankruptcy will not stop a criminal case. Contact an affordable bankruptcy lawyer in Elizabethton, Johnson City, Kingsport, or surrounding areas in Northeast Tennessee if you need the protection of the automatic stay.
Generally, yes. Almost all attempts to collect a debt are stopped by the filing of a bankruptcy. This includes lawsuits that have been filed or served. If you have been sued in Carter County and are looking for an affordable bankruptcy or debt relief attorney, let me know. Filing for bankruptcy is the right you have to stop a pending lawsuit.
Even if your creditor has a judgment against you, it is not too late. The automatic stay will stop even final judgments. Don’t let your creditor garnish your wages, levy your bank account or file a lien against your property because of a lawsuit.
Call or click for a free appointment to see if you qualify for Chapter 7 Bankruptcy based on the means test or other circumstances.
If a creditor has obtained a judgment against you and is currently garnishing your wages, the automatic stay can stop a wage garnishment. Whether you are being garnished for a large medical bill or a finance loan, filing bankruptcy is your right to stop a garnishment and keep your property.
In Tennessee, a creditor can garnish up to 25 percent of your paycheck. Filing a bankruptcy will immediately stop the garnishment, and if the creditor continues to garnish your wages, you will be able to recover the money since the creditor will be in violation of the automatic stay. You will want to be active in filing a bankruptcy, since it takes time to prepare your forms. Not until you file your case will the automatic stay be in place and the garnishment stopped.
If you are in Elizabethton, Johnson City, Kingsport or anywhere in Northeast Tennessee, visit the office or schedule a consultation to see if filing a bankruptcy is in your best interest to stop a garnishment. You can also pursue other course of action to stop a garnishment such as debt consolidation or settlement.
If you are months behind on your car payment, your creditor can repossess your car to satisfy part or all of the debt. However, repossession is a collection on a debt, so filing bankruptcy will stop a repossession and allow you to keep your vehicle while the automatic stay is in place.
If your vehicle has recently been repossessed, you may be able to recover it by filing a Chapter 13 bankruptcy. In Tennessee you must act quickly. After a certain amount of time, the creditor will be able to sell the car and it will become unrecoverable.
A Chapter 13 Bankruptcy is a powerful remedy to allow you to stop a foreclosure and catch up on your mortgage. If your mortgage company is threatening you with foreclosure, filing a bankruptcy will stop the foreclosure proceedings. The automatic stay prevents a creditor from selling your debt or any other attempts to evict you from your house.
If you have the ability to catch up your mortgage through a Chapter 13 plan, you can keep your house and get back on track in making your mortgage payments.
Call or click for a free consultation with an affordable bankruptcy lawyer in Elizabethton, Johnson City, Kingsport or Northeast Tennessee if you are facing foreclosure and need assistance in a plan to catch you up on your mortgage.
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