What does “Automatic Stay” mean in bankruptcy?
Upon filing of a Bankruptcy petition, creditors, including tax collectors, are prohibited from any attempts to collect from you because “Automatic Stay” is in effect. This means, creditor calls, repossession, foreclosure, lawsuit (with some exceptions), and other collection efforts must stop immediately. Automatic stay does not stop actions in marital dissolution proceeding to establish, modify or enforce child or spousal support, custody and visitation, criminal proceeding by the state or federal government, and actions where debtor is the plaintiff or moving party.
If creditor harassment or lawsuit that do not fall under the exception continues despite your bankruptcy filing, call Muoi Chea Sacramento Bankruptcy Attorney in Sacramento, Stockton, or Fairfield, California Office immediately to enforce the automatic stay under the bankruptcy codes. Do not tell the creditors anything other than your bankruptcy case number, date of filing, and bankruptcy chapter.
Automatic stay does not last forever. You would not file a Chapter 7 Bankruptcy if your intention is to keep your car or home. You would file a Chapter 13 Bankruptcy instead.