As a Las Vegas Lawyer I am versed in working with both Chapter 7 and Chapter 13 personal bankruptcies. Unfortunately, Las vegas can be viewed as the Bankruptcy capital of the United states. So, before considering filing for a Las Vegas Bankruptcy you need to know what bankruptcy can do for you. This post is a brief essay on the automatic stay in Bankruptcy. Upon filing bankruptcy, as a debtor, an automatic stay is introduced. What an automatic stay prohibits creditors from doing certain measures. For example, once bankruptcy is filed a creditor can not due the following: Begin or continue a court action against you in any effort to collect the debts that you allegedly owe. Continue with any collection calls. Once bankruptcy is filed a collection agency must cease and desist all attempts to collect any alleged debts. All repossessions must stop. Please be aware that if you’re behind on payments, filing a Chapter 7 bankruptcy can temporarily stop the repossession of your car. But, the stay is only temporary. The creditor’s can be able to reposess your car if they decide to file a request to lift the automatic stay. Filing bankruptcy can stop the foreclosure sale of your property. Again, with a chapter 7 bankruptcy, it is temporary. A chapter 13 bankruptcy can afford you more protection if your goal is to stop a foreclosure sale. Filing bankruptcy can stop the garnishment of your wages. This automatic stay will last until the following: 1. At the request of the creditor, the judge may lift the automatic stay. 2. The item of property no longer belongs to the individual declaring bankruptcy. 3. The debtor gets the discharge. This occurs during when a chapter 7 bankruptcy is filed and a foreclosure and /or repossession is temporarily halted. After the debtor gets a discharge a creditor is then free to purse repossession and foreclosure on the debtor’s property. So, with an automatic stay, a bankruptcy can allow you to get your economic affairs together, provide you relief from harassing calls from creditors, and cease the garnishing of your wages. However, remember in the case of a chapter 7 bankruptcy these outcomes are only temporary. As a Las Vegas Bankruptcy Lawyer I am versed in working with both Chapter 7 and Chapter 13 personal bankruptcies. Unfortunately, Las vegas can be viewed as the Bankruptcy capital of the United states. So, before considering filing for a Las Vegas Bankruptcy you need to know what a bankruptcy does. This post is a brief essay on the automatic stay in Bankruptcy.

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This entry was posted on Tuesday, January 10th, 2012 at 8:35 pm and is filed under . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.