… a debtor files Chapter 7 or Chapter 13 bankruptcy, he/she will receive the protection of an automatic stay.  The automatic stay prevents creditors from taking collection actions against the debtor in bankruptcy and also forbids the creditor from calling, writing, issuing a wage garnishment order, seizing the debtor’s bank account or assets, filing a lawsuit or filing foreclosure on the debtor’s home.  However, there are circumstances where a creditor will seek relief from the …

Tags: Automatic stay Chapter 13 Bankruptcy Chapter 7 Bankruptcy Creditor foreclosure Law

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… Gregory W.; In re, the bankruptcy court denied the Chapter 13 debtor’s motion to extend the automatic stay.

The details of the bankruptcy case:

“The Chapter 13 debtor and his wife were self-employed. Together, they filed for bankruptcy five times. Three of the bankruptcies were filed on the day before

a scheduled foreclosure sale of their home. The fourth case was filed by the debtor alone two months after his wife’s case was dismissed with prejudice. The debtor’s current …

Tags: Automatic stay Bankruptcy Law

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… have to leave you alone.

For almost anyone who has gone through bankruptcy before, the term “automatic stay” is music to their ears.  An automatic stay is an injunction by a court which stops (stays) creditors from trying to collect debts from anyone who has declared bankruptcy.

Section 362 of the United States Bankruptcy Code says that the stay starts as soon as a bankruptcy petition is filed.  However, the courts do not have to contact your creditors until ten days after the …

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When a debtor files for bankruptcy, the first form of relief they receive is an automatic stay. An automatic stay stops creditors in their tracks so that the debtor’s assets, including property and wages can be protected from seizure while the bankruptcy case proceeds.

Bankruptcy’s automatic stay prohibits creditors from calling a debtor’s house or work. The bankruptcy automatic stay also prohibits creditors and their attorney ’s from sending the debtor letters; …

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… is not dischargeable in bankruptcy does not mean it is not subject to the rules of a bankruptcy automatic stay. For example, there are many debtors who have divorce decrees with language stating that the obligations outlined in the divorce are not dischargeable in bankruptcy. This however does not mean that those “non-dischargeable obligations” are not subject to the automatic stay.  In other words, once a debtor files bankruptcy all creditors (hold dischargeable or non-dischargeable …

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When a debtor files bankruptcy, the bankruptcy court imposes an automatic stay that prevents most creditors from taking collection action against the debtor. But an automatic stay will be lifted when:

The bankruptcy case is closed. If a bankruptcy case is closed by the debtor or the court, creditors can resume collection activity against the debtor.

The bankruptcy case is dismissed. If the court dismisses the debtor’s bankruptcy case for any reason, …

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An automatic stay, which generally becomes effective once a bankruptcy is filed, stops all collection actions against the debtor. But the automatic stay will end once one of the following events occur:

The bankruptcy case is closed in a Chapter 13 case. For example, if a debtor withdraws a bankruptcy petition then the case would be closed and the automatic stay would be lifted and …

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… amount to a much lower percentage of what they pay now.

Chapter 13 bankruptcy still offers automatic stay protection, which stops creditors from taking collection actions against you while you’re in bankruptcy.

Chapter 13 bankruptcy simplifies repayment of debts by allowing the debtor to make one easy payment which will be distributed to creditors.

Chapter 13 bankruptcy allows debtors an opportunity to repay delinquent debt over a 3 to 5 year period, free …

Tags: Automatic stay Bankruptcy Chapter 13 Title 11 United States Code

… Filing for bankruptcy will stop all creditor actions against you immediately.  Using an automatic stay, the bankruptcy court will prohibit creditors from contacting you, filing a lawsuit against you, seizing your assets or collecting on a judgment.  This also means that any foreclosure proceeding will stop.

2. When filing for bankruptcy you must report all of your debts and assets.  If you took out a $200 loan from a relative or friend, it must be …

Tags: Automatic stay Bankruptcy Credit history Creditor Debt

… case of (DiGiovanni, Peter W.; In re), the bankruptcy court grants a debtor’s motion to impose stay despite several mishaps that nearly landed him in jail.

The details of the bankruptcy case:

After the debtor (who is also a non-bankruptcy lawyer) was removed as the executor of the estate, the state court found the debtor in contempt of court because he failed to turn over the estate records to the new executor.   The debtor was ordered to pay $29,279 by the state court.  A few days …

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… Borgens, Charlotte P.; In re (Wells Fargo Bank Minn. v. Borgens), the bankruptcy court extended a stay of relief, giving a debtor more time to save her home from foreclosure despite the mortgage lender’s protests.

The details of the bankruptcy case:

“The debtor filed for Chapter 13 bankruptcy on March 15, 2004. A little more than one year later, a consent order was entered modifying the automatic stay to provide that the debtor was to make monthly payments of $431.04 to Wells …

Permalink: /dfw_metro_bankruptcy/bankruptcy-court-exercises-power-to-extend-stay-of-relief-for-homeowner/

… 03/05/09) a bankruptcy court awarded $15,240 in damages to a debtor who was the victim of an automatic stay violation.

Bankruptcy Case Details:

After being notified that the debtor had filed for bankruptcy a creditor continued to automatically withdraw payments of $201 from the debtor’s bank account for three months. Even after receiving a sanctions motion the creditor failed to respond and failed to show up to the hearing. The creditor did settle the automatic stay violation …

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