Bankruptcy Automatic Stay – Busby & Associates
Many debtors turn to bankruptcy for the statutory provision called the automatic stay. The stay acts as a bar from the collection efforts of any creditors to collect debts or liens. When you file for bankruptcy an automatic stay immediately stops any lawsuit filed against you and most actions against you. The automatic stay provision is in accordance with Section 362 of the Bankruptcy Code. To help with understanding automatic stay and how it works, Busby & Associates attorney and spokesperson gave comments. When asked how the provision of automatic stay works, the spokesperson stated that, “the automatic stay is a provision that is especially helpful and provides relief for debtors who are at risk of being foreclosed on, evicted or found in contempt for failure to pay money in respect of judgements against the debtor such as failure to pay child support, losing basic resources, welfare, unemployment benefits. Thus the automatic stay can provide a strong reason to file for bankruptcy because of the protection it provides”. How long does the automatic stay take to come into effect? The spokesperson responded that, “the automatic stay comes into effect when the debtor files his/her bankruptcy case and it applies to both chapter 7 and chapter 13 bankruptcy. Once you file bankruptcy the automatic stay bars any attempt to start, continue or complete creditor action. No action is needed besides for the filing a bankruptcy petition for the automatic stay to come into effect”.
What does the automatic stay protect against? The spokesperson mentioned that the automatic stay provided protection in some of the following ways: Foreclosure – where the debtor’s home mortgage is being foreclosed on the automatic stay puts a temporary stop on such proceedings. However, the creditor will be able to proceed with the foreclosure. According to filing chapter 7 bankruptcy laws in Texas, the debtor’s property is exempt under the provision of the Texas Bankruptcy Code under homestead exemptions and thus would be able to keep his/her house. Multiple wage garnishments - the automatic stay immediately stops wage garnishments dead in their tracks once the debtor has filed bankruptcy.
The automatic stay prohibits the start or continuation of any judicial, administrative or other action or proceedings against the debtor that was or could have started before the filing of the bankruptcy case. The automatic stay prohibits the act of collection, assessment or recovery of any claim against the debtor from before filing for bankruptcy. This includes telephone calls, letters of demand or continuation of invoicing of the debtor for goods or services provided. It thus stops creditors or collection agencies from calling the debtor in respect of debts owed and thereby giving the debtor some ‘room to breathe’.
About the company: Busby & Associates are a renowned law firm of professionals who provide legal services including bankruptcy filing for both chapter 7 and chapter 13 bankruptcy. If you are looking for bankruptcy lawyers in Houston, Texas; Busby & Associates are attorneys of choice.
Source :- http://www.freeprnow.com/pr/bankruptcy-automatic-stay-busbyassociates