What Is the Automatic Stay
The automatic stay is one of the most important tools your Montgomery bankruptcy attorney can use to protect you against your creditors. It is vitally important to protecting you and your assets! The automatic stay is in place the moment your bankruptcy petition is filed. “Stay” is really just a legal word for stop or injunction. You might consider it an automatic injunction against your creditors from taking almost any action against you to collect almost any debt.
At The Sellers Law Firm when our Montgomery bankruptcy attorneys file your bankruptcy petition you can take a sigh of relief! The automatic stay is in place which protects you and your assets in just about every possible way from your creditors. It will stop all the harassing phone calls and letters; it will stop garnishments; it will stop lawsuits; it will stop the repossession of your automobile, and the foreclosure of your home. Furthermore, it will stop creditors from suing you and executing upon any judgment or judgment lien they have, and it will also stop the IRS from recording a tax lien against you. Very few legal proceedings work as quickly and efficiently as the automatic stay does in a bankruptcy proceeding. Almost every other form of injunction requires a hearing before a judge and an order signed by that judge except the automatic stay in a bankruptcy case. You might consider it a one-sided, immediate court order that helps make your life a lot more simple.
However, this is not to say that creditors can't try to move quickly to set aside an automatic stay. To do so, a creditor must file a Motion to Lift the Automatic Stay. This is a procedure in which creditors may ask the bankruptcy judge for permission to again chase you or your property. Most of these motions are filed by secured creditors or by the IRS; however, many of these motions are not granted, and when these are granted, a series of conditions generally has to have occurred such as (1) the Creditor must prove some history of fraud; (2) a history of repeated filings of bankruptcy, or (3) a complete inability to pay what your bankruptcy attorney proposes in the Chapter 7 or Chapter 13 bankruptcy case.
You might ask yourself how do I get an automatic stay? It is very simple! In order to obtain an automatic stay you must file a Chapter 13 or Chapter 7 bankruptcy. We believe it's best to speak to one of our Montgomery bankruptcy attorneys. We will go over the specifics of your case including your debts, your assets, your income, and the nature of the type of creditors. After a free consultation with you, we will then discuss the options that you have for filing.
There are a few exceptions to the automatic stay. First, if there is a criminal case that is being brought against you, then a district attorney may proceed with that criminal action. An ex-spouse, soon-to-be spouse, child or some person or government agency acting on their behalf may continue divorce or Family Court proceedings to collect such things as alimony, child support, or paternity of a child. Also, if you owe a spouse child support it does not stop the continuing obligation to pay child support. Furthermore, if the IRS or another taxing authority is auditing, then it can continue to complete their audit, but it cannot issue any tax liens against you or your property.
For more information on automatic stays, please contact the experienced Montgomery bankruptcy attorneys at The Sellers Law Firm. All consultations are always free. We have four convenient locations in Montgomery, Selma, Greenville, and Troy! You may contact us by emailing us at firstname.lastname@example.org. You may set an appointment by calling 334-LAWYERS (334-529-9377) or by using the Contact Form or “text us” link on our website. Remember that doing nothing changes nothing so act today!