What Is The Automatic Stay In Bankruptcy?

Life can become stressful when you are faced with mounting debts you cannot pay. Creditors call your home constantly, you receive demanding collection letters, and you may be burdened with wage garnishments, judgments and liens that make your life difficult.

Relief From Debt Collectors

Fortunately, bankruptcy provides quick relief from creditor collection efforts due to the automatic stay that commences with every filing. I am attorney Steven F. Bilsky, and I provide real help for people facing difficult debt challenges. I have been representing clients in Tennessee with bankruptcy since 1980 and I can explain every element of the process.

I understand that people are often worried about filing a bankruptcy. But many clients I work with find a significant weight has been lifted from their shoulders once they understand the type of real debt relief that is available through a Chapter 7 or 13 bankruptcy.

The Automatic Stay

Both Chapter 7 and Chapter 13 bankruptcy provide immediate relief from creditors with the automatic stay. When you file for bankruptcy, a "stay," or a prohibition, on all collection efforts goes into effect automatically, which is why it is called the "automatic stay."

This order is temporary, in the sense that it protects you during the term of the bankruptcy, but if you have secured assets, like a car, truck or home, you must plan on continuing to make payments or surrender the property. During our discussions, I will explain how this will work in your specific situation.

The automatic stay will help put a stop to collection calls, wage garnishments, ongoing lawsuits and other adverse collection measures.

However, the automatic stay puts a halt to most forms of creditor collection efforts and provides critical time for debtors to seek debt relief through Chapter 7 or Chapter 13 bankruptcy.

Contact Me Today

I am an experienced bankruptcy lawyer and I can help you. To schedule a free initial consultation, call my Memphis office at 901-525-6692 or use my online form.

The Law Office of Steven F. Bilsky is a debt relief agency that helps people file for bankruptcy relief under the Bankruptcy Code.