Automatic Stay In Bankruptcy

An automatic stay protects the debtor from creditors while they try to reorganize their financials...

When a debtor files for bankruptcy, one of the first things to happen is that an automatic stay will go into effect.  An automatic stay protects the debtor from creditors while they try to reorganize their financials. It is a court order which stops creditors from calling or harassing the debtor after they filed for bankruptcy,  giving the trustee time to look over the debtors income, assets and debts.

There are many advantages to the automatic stay.  Aside from stopping the annoying phone calls from creditors, the automatic stay has other benefits to the debtor. For example, it can stop your home foreclosure from proceeding, and prevent disconnection from utilities if you are behind on your payments. It will definitely alleviate much of the debtors stress from their creditors.

An automatic stay will stay in effect from the time you file a bankruptcy petition until your debts are discharged from the bankruptcy.  Creditors can file a motion to lift your automatic stay, in which case, each motion to lift your stay would be for reasons unique to your case and should be discussed with your attorney on how to defend each action.