Extending An Automatic Stay
Filing for bankruptcy automatically operates as a stay to almost all debt collection proceedings. Thus, what’s called an “automatic stay” is an important benefit of bankruptcy, immediately stopping any action from being taken against a general debt. Whether you need to stop a wage garnishment or repossession or have a bank account unfrozen, the automatic stay lets you do that and provides a fresh opportunity to put your financial house in order. If you’re considering bankruptcy in the Chicago area, be sure first to discuss your situation with an experienced Chicago bankruptcy lawyer. If you need protection from debtors right now, don’t wait to make the call.
Once you’ve filed for bankruptcy, the automatic stay forbids creditors to demand a payment verbally or in writing; to file or pursue a lawsuit against you; to garnish your wages or issue a citation against you; or to foreclose or repossess your home or property. If you choose bankruptcy, take seriously the opportunity to put your finances right. Repeat bankruptcies offer less protection. If you file a Chapter 13 bankruptcy within a year of a previous Chapter 13 bankruptcy, the automatic stay will last only 30 days unless you can get the court to extend it. Without a motion by your lawyer and a hearing, creditors are free to move against you after 30 days. If you had two bankruptcies pending in the previous year, you receive no automatic stay at all unless the court orders it. You can avoid a lot of unnecessary trouble by letting a good bankruptcy lawyer be your advisor and guide through any bankruptcy proceeding.
The automatic stay is an important part of the protection you gain when you file for bankruptcy. Don’t do anything that weakens that protection. A good bankruptcy lawyer can explain the various bankruptcy alternatives to you and recommend the option that’s in your best longterm interests. If you’re facing mounting debts or the threat of foreclosure anywhere in the greater Chicago area, don’t wait to get the help you really need. Call an experienced Chicago bankruptcy lawyer today.
