Automatic Stay

One of the most fundamental protections for companies or individuals filing for bankruptcy is the automatic stay.  The automatic stay is a federal injunction which prevents creditors from engaging in self help collection activity.  This law disallows anything from a phone call all the way up to a repossession or foreclosure.  In fact, when someone says “bankruptcy protection” they usually are referring to the “protection” of the automatic stay.  The automatic stay arises the instant a bankruptcy petition is filed.

Among the actions stayed are:

  • Phone calls, letters, etc
  • Repossessions of assets
  • Foreclosure sales
  • Setoffs

At Collins & Arnove, we are experienced in using the Automatic Stay laws to help our clients keep their collateral.  We are able to stop foreclosure sales and even get our client(s) vehicles back after they have been repossessed.   The rules here are complex, so please make sure to contact us right away if you seek this type of protection.

Motion for Relief from the Automatic Stay

A creditor may ask for “Relief From the Automatic Stay.”  If this occurs it is important that you have an experienced Bankruptcy Attorney to help protect your rights.  At Collins & Arnove, we have experience in dealing with creditors and setting up agreements to allow our clients to keep their collateral if the creditor wishes to file a motion for Relief.

 

Automatic Stay Ending as an Operation of Law

Sometimes the automatic stay can end automatically by operation of law.  This occurs if there has been more than one filing in the last year.  There are special provisions that allow the Debtor to “Extend” the Automatic Stay.  It is important to consult with an experienced Bankruptcy Attorney who knows how to properly “Extend” your automatic stay if your situation calls for it.

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