BottomLine Lawyers

Bankruptcy’s Automatic Stay

Bankruptcy Automatic Stay Attorney in Auburn, CA

Whenever the word bankruptcy comes up, the mind automatically wanders off to thoughts involving creditors calling nonstop and threatening to file lawsuits, having possessions sold off to pay off debts, collecting possessions, and a host of other things. However, there is such a concept as automatic stay, which can be of big help in this situation which a bankruptcy automatic stay attorney from a reputable law office can help you.  Automatic stay is defined as the process of filing for bankruptcy to put a stop to certain collection efforts such as foreclosure, wage garnishments, creditor harassment, and seizing debt collection processes. While it can seem like such a great form of debt relief, there are still some exceptions that one must understand before resorting to automatic stay. 

Seasoned Bankruptcy Automatic Stay Attorney from Auburn, CA Law Office

If you are faced with bankruptcy woes and would like to put it on automatic stay in order to prevent harassment and lawsuits and to get some form of debt relief, know that getting in touch with a bankruptcy automatic stay attorney Auburn CA law firm Bottomline Lawyers is proud to have is the best course of action. There are so many ways an attorney can help you and guide you towards debt relief and steer you towards the best possible outcome is just one.  Get in touch with a seasoned Auburn CA bankruptcy lawyer from Bottomline Lawyers. A bankruptcy lawyer can provide you with legal advice and guide you through bankruptcy law, together with aggressive representation to ensure that you come out on top and get your life back together. Schedule an appointment with an Auburn CA bankruptcy automatic stay attorney right now.

Why do I need a Bankruptcy Automatic Stay Attorney in CA?

bankruptcy automatic stay attorneyFacing bankruptcy and other financial woes can leave you in a state of distraught, panic, and hopelessness. While it is greatly an emotional issue for many, the financial aspect of it is the largest, most obvious factor for why many do not wish to seek legal assistance. However, legal assistance is most needed at this time since only a seasoned bankruptcy automatic stay lawyer can help you navigate bankruptcy law and represent you in bankruptcy court.

The bankruptcy lawyer at Bottomline Lawyers has over three decades of experience in law, including tax resolution, bankruptcy, and estate planning, providing tailor-fit solutions to each individual’s problems depending on their personal situation. Bottomline Lawyers provides an integrative, multi-disciplinary approach to the legal case. 

Get in touch with a bankruptcy automatic stay attorney right now. An attorney can review your case and offer quality and aggressive representation together with providing legal advice in bankruptcy law such as providing knowledge of bankruptcy code to help clients better understand their situation. A bankruptcy attorney can also help you with creditors who wish to continuously harass you even after being on automatic stay. Schedule an appointment right now to get to the bottom of your bankruptcy case.

What is Automatic Stay?

Automatic stay kicks in when you file for bankruptcy. This process stops all other collection efforts involving debt collection such as repossession, foreclosure, wage garnishments, collection calls from creditors, and lawsuits from creditors. This is one of the reasons why many file for bankruptcy, since automatic stay is a compelling way to put a stop to losing valuable assets. 

Automatic stay works for most people, but remember that there are also certain exceptions to it. Before deciding on the next course of action, remember to enlist the help of an experienced bankruptcy automatic stay attorney who can walk you through the bankruptcy process and provide bankruptcy relief. 

What Does Automatic Stay Prevent?

Take note that automatic stay prevents the following, albeit temporarily:

  • Disconnections of Utility. Automatic stay can help prevent utility disconnections, especially if the company is threatening to disconnect water and electricity, for at least 20 days. The amount of the bill doesn’t justify a bankruptcy filing but if you have other existing debts, it can be done. 
  • Foreclosure. If you are facing foreclosure, an automatic stay will put a stop to it. The next course of action depends on the type of bankruptcy you file. If you file for chapter 13 bankruptcy, you get to keep your home and catch up on payments via the payment plan. As for chapter 7 bankruptcy, the relief provided is temporary since there isn’t any other way to keep your home. 
  • Eviction. Similarly, if you are facing eviction, automatic stay can provide temporary help. This has not have much power if your landlord already has a judgment of possession against you. 
  • Overpayment of Public Benefits. Receiving overpaid public benefits merits collection from the agency but it can be put on hold thanks to automatic stay. 
  • Wage Garnishments. Wage garnishment is the act of collecting some of your income to be used to pay off your debts. Filing for bankruptcy kickstarts automatic stay and this helps you take home a full income and discharge debt. 

What Does Automatic Stay Not Prevent?

Automatic stay can be of great help but it also has its exemptions. Automatic stay won’t help you in the following situations:

  • Tax Proceedings. Even with an automatic stay, the IRS can still audit and issue tax deficiency notices and even demand tax returns. They can still issue and demand payments for assessments. Your responsibility over taxes depends after its discharge in chapter 7 bankruptcy or liquidation bankruptcy or if you have been able to pay the debt in chapter 13 bankruptcy.
  • Support. Lawsuits seeking you to provide child support and alimony won’t be stopped by automatic stay.
  • Criminal Proceedings. Automatic stay doesn’t prevent criminal proceedings such as if you are ordered to pay a fine. 
  • Pension Loans. Money can be withheld to repay loans for pensions. 
  • Multiple Filings. In bankruptcy cases, that have been pending in the previous year, the automatic stay will be terminated after 30 days unless the bankruptcy trustee or creditor asks for it to remain. 

How Does Collection Resume?

Creditors can ask bankruptcy courts to remove or lift the automatic stay. In order to avoid fines and penalties, the creditor usually files a motion that asks for consent to collect. The motions include foreclosure action, landlord/tenant disputes, and lawsuits in other courts. 

The bankruptcy court won’t automatically grant the creditor’s request but the creditor must show that maintaining automatic stay for the debtor would cause them to lose money. Upon filing the motion, the debtor has the power to oppose the motion before a judge and if the creditor makes the case, the request will be granted. Among the reasons for granting the request include: 

  • The debtor cannot keep the property
  • No equity that can be used to pay off other creditors
  • Property liens gives the lender right to recover, sell, and use the proceeds from the home

Litigation for this part can be quite complicated which is why it is important in this case to get in touch with a bankruptcy automatic stay attorney who can help you every step of the way. 

Call our Auburn Bankruptcy Automatic Stay Attorney Now!

Just when you think being bankrupt puts you in a state of hopelessness, then comes automatic stay, which puts a hold on most collections, foreclosures, evictions, and other practices that could cause you to lose assets. However, it is important to still be mindful of the terms that are and aren’t allowed in automatic stay. 

Consulting with an expert in the field, a bankruptcy automatic stay attorney from Bottomline Lawyers can provide you with the clarity you need to move forward. Schedule an appointment with an experienced bankruptcy attorney from Auburn, CA right now.

BottomLine Lawyers

Facing Bankruptcy or other financial matters? We can help!

BottomLine Lawyers Logo

Facing bankruptcy or other financial matters? We can help!

Pop-up form