Technically, the provision for the automatic stay that applies to every bankruptcy case that is filed is found in 11 USC §362. This is the Unites States Bankruptcy code. The practical effect, however, of the automatic stay is of utmost importance to anyone seeking relief from creditor harassment, repossession of personal property or foreclosure of real property. This provides a huge relief to people who file for any chapter of relief under the bankruptcy code. Upon the exact minute of the filing of a bankruptcy petition with the bankruptcy court, this automatic stay goes into immediate effect and is applicable to all creditors. This will give a person who files immediate relief from the incessant creditor phone calls and relieve them from fear of an automobile being repossessed or a home being foreclosed upon as it prevents any action by creditors to collect on a debt. Once the automatic stay has gone into effect, all creditors of the bankruptcy petitioner must immediately cease any type of collection efforts against the Debtor directly. The creditors must handle the majority of post-bankruptcy matters either through the attorney of record and/or by filing a formal motion to be set for hearing before the bankruptcy court. The automatic stay is the exact type of relief intended by the Bankruptcy law to relieve a Debtor of financial stress.
If you are someone who is struggling with debt and needs financial assistance please contact the Bond and Botes office nearest to you for a free confidential and private consultation with one of our licensed attorneys at your convenience to discuss how the automatic stay can benefit you.
Amy K Tanner is a shareholder in several of the Bond & Botes Law Offices. She holds a Bachelor of Science from Auburn University at Montgomery, and a Juris Doctorate from Thomas Goode Jones School of Law. She focuses primarily on consumer bankruptcy law in the Huntsville and Decatur offices.Read her full bio here.