Bankruptcy Automatic Stay
When To Declare Bankruptcy?
Are you facing foreclosure on your home? Has your landlord started eviction procedures against you? Are you parking your car at difference places each night to avoid the repo man? Are the lawsuits piling up against you? Do you need some time to get yourself and your finances together? Do you need a cooling off period of time to reflect on where you are, how you got there, and where you want to go from where you are? Then a bankruptcy automatic stay may be just the right thing for you at this stage of your life.
Two Months To Get Things In Order
A bankruptcy automatic stay means that the moment you file your bankruptcy petition with the District Court Clerk’s Office, all debt collection and related type actions against you are stayed, stopped, frozen, for 60 days. This gives you a cooling off period and affords you time to gather your thoughts and explore your options with an attorney or other professional. Not only are debt actions halted, any lawsuits against you are also put on hold until the stay is lifted by the bankruptcy court.
This is a very powerful tool in your war chest of options. Of course, you and your attorney will need to give notice to everyone. You can fax, email, deliver, or just telephone your creditors and others notice of your bankruptcy filing until they receive formal notice from the District Clerk’s office.
It Can Potentially Save Your Home
The power of this stay cannot be over emphasized. Even if your landlord has obtained an eviction order against you but the three to 10 days before its enforcement are not yet expired, the stay will prevent the sheriff or other law enforcement officer from enforcing the eviction order. Say this is Monday before your home is sold on the courthouse steps on Tuesday and you file bankruptcy a minute before the clerk’s office closes. The stay is in effect and you can take a copy of your petition to the courthouse steps the next day and hand it to the person conducting the sale and s/he will have to halt the sale.
This article is for general informational purposes. No attempt is made to render legal advice. As always, you should discuss your particular situation with an attorney of your choice.
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