Being a Las Vegas Lawyer I am versed in dealing with both Chapter 7 and Chapter 13 bankruptcies. Regrettably, Vegas can be viewed as the Bankruptcy capital of the US. So, before considering filing for a Las Vegas Bankruptcy you should 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 enacted. What an automatic stay prohibits creditors from doing certain actions. For example, once bankruptcy is filed a creditor can not due the foregoing: Begin or continue a lawsuit towards you in any attempt to collect financial obligations that you presumably owe. Carry on 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 in the short term stop the repossession of one’s car. But, the stay is only non permanent. The creditor’s can be able to reposess your car if they decide to file a request to lift the automatic stay. Declaring bankruptcy can stop the foreclosure sale of your house. Again, with a chapter 7 bankruptcy, this is only temporary. A chapter 13 bankruptcy can afford you more protection in case your goal would be to stop a foreclosure sale. Declaring bankruptcy can stop the garnishment of one’s wages. This automatic stay will last until the following: 1. At the request of a 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 briefly 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 bothering calls from creditors, and stop the garnishing of your wages. But, remember in the case of a chapter 7 bankruptcy these outcomes are only short-term. Being a Las Vegas Bankruptcy Lawyer I am versed in dealing with both Chapter 7 and Chapter 13 bankruptcies. Regrettably, Vegas can be viewed as the Bankruptcy capital of the US. So, before considering filing for a Las Vegas Bankruptcy you should 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 Wednesday, January 25th, 2012 at 6:04 am 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.