About The Automatic Stay
You have heard the phrase automatic stay. What is it exactly?
The automatic stay is the single most important element in the United States Bankruptcy Code. It is the bankruptcy judge issuing an order telling all your creditors to stop everything they are doing to obtain payment from you.
And it works. Within hours of filing for bankruptcy, the word goes out to every creditor you list on your documentation, crying HALT to all collection efforts.
What Happens When The Automatic Stay Goes Into Effect?
The phone stops ringing. The postal carrier stops bringing you bills. No repo man will darken your door. Garnishments end. Even foreclosures come to a halt — although they can start up again in Chapter 7 cases.
Many of our clients describe the automatic stay as magical. Suddenly, the environment is changed, from a hostile, harassing one to one in which you can breathe again.
Technically, the automatic stay is an injunction. It is also a kind of protective order. It is automatic because you don’t have to convince a judge to issue it. It happens automatically. Often it is the first time our clients felt they had the government firmly on their side, on any issue.
The Power Of Personal Bankruptcy
The automatic stay is one reason why bankruptcy is better than debt consolidation schemes. The other advantage is that the court will eventually discharge all of your unsecured debts — including credit card bills and doctor bills. They will even discharge your payroll loans.
You can go to other debt relief outfits. But you can only obtain the protection of the automatic stay through bankruptcy. Lawyer Tom McBride of Alexandria, Louisiana, has helped thousands of people do this. He can help you now.