Creditors have a variety of methods at their disposal to collect debts in the form of levies, liens, and garnishments. These processes can leave debtors feeling like unprotected divers swimming in a sea of sharks!
Thankfully, the bankruptcy code offers a proverbial shark cage to protect debtors and their property in the form of an automatic stay. It’s this protection that makes the imposition of the automatic stay, along with the discharge of debt, one of the significant advantages of filing bankruptcy.
The automatic stay benefits debtors by barring the collection of secured and unsecured debts incurred prior to the filing of the bankruptcy petition.
Applied to everyday life the stay can be used to halt:
This protection means that you can confidently dive into the water knowing that your home, property, and income are safe from the predations of those tenacious creditors.
While powerful, the automatic stay is not absolute and does not apply to a range of actions.
These actions may include:
Once initiated the stay will continue for the duration of the bankruptcy; unless it is lifted by creditors or limited by the existence of multiple bankruptcy filings in the current calendar year.
For example, mortgage or car lenders can lift the stay even with very little or no equity in the property, especially if the debtor is behind on payments. It’s these pitfalls that make it even more important that our protective shark cage be soundly constructed.
For more information on how the automatic stay could benefit you, please contact Blake Goodman, P.C. for your free consultation.
Blake Goodman received his law degree from George Washington University in Washington, D.C. in 1989 and has been exclusively practicing bankruptcy-related law in Texas, New Mexico, and Hawaii ever since. In the past, Attorney Goodman also worked as a Certified Public Accountant, receiving his license form the State of Maryland in 1988.
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"I was very pleased with the outstanding service you provided. You and your staff consistently made extra efforts in assisting me with my bankruptcy case. I will definitely recommend your business to others because of my satisfaction with your service."
Phetsamone Vuong
"Mr. Goodman and his staff were great and worked with me every step of the way."
Randi Brown
"Blake Goodman provided professional and outstanding legal advice. They are responsive, knowledgeable, and very thorough. I would recommend his firm with complete confidence knowing that they will receive the best possible service."
Moune Romano
"I’m very grateful to Mr. Goodman for the effort and patience he had with me and my daughter. I appreciate it. As for his staff members, they are very kind. My grand-daughter reports to me that Mr. Blake Goodman is a very highly honored attorney."
Martha Aki
"I am very pleased with your services and would wholly recommend your excellence to everyone. I am happy with the outcome of my case. Everything is possible with you. Thanks on a job well done!"
Randy Borges
"When I first came to Mr. Goodman’s office, I was prepared to file bankruptcy – I was tens of thousands of dollars in debt and could see no way out. He helped me work out a payment plan then negotiated with my creditors on my behalf..."
Steve
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