The Automatic Stay: Your Shield Against Creditor Harassment in Bankruptcy

by: Attorney Noyes

9/21/20232 min read

When facing overwhelming debt, the constant pressure from creditors and collection agencies can be distressing. If you're drowning in financial woes, it's essential to know that there's a legal mechanism that can offer you immediate relief: the automatic stay in bankruptcy. In this article, we'll explore what the automatic stay is, how it works, and how Noyes & Associates can help you put an end to creditor harassment through bankruptcy.

Understanding the Automatic Stay: What Is It?

The automatic stay is a powerful provision of bankruptcy law that goes into effect the moment you file for bankruptcy. It's an injunction that automatically stops most collection actions by creditors, providing you with immediate relief from their relentless harassment.

What Does the Automatic Stay Stop?

1. Creditor Calls and Letters: Once you file for bankruptcy, creditors are legally prohibited from contacting you through phone calls, letters, or any other form of communication.

2. Lawsuits and Legal Actions: If creditors have initiated lawsuits against you, the automatic stay puts a halt to these legal proceedings. It can prevent wage garnishment, property liens, and bank levies.

3. Foreclosure: If you're facing foreclosure on your home, the automatic stay can temporarily halt the process, giving you time to explore options like a loan modification or Chapter 13 bankruptcy.

4. Eviction: If you're behind on rent, the automatic stay can delay eviction proceedings temporarily, but it doesn't provide long-term relief for unpaid rent.

Exceptions to the Automatic Stay:

While the automatic stay is a robust shield against creditor harassment, it's essential to know that it doesn't stop everything. There are exceptions, such as:

1. Criminal Proceedings: Criminal cases continue during bankruptcy, and the automatic stay doesn't apply to criminal matters.

2. Certain Tax Actions: Some tax-related actions, like audits, collection of support, and issuance of tax deficiency notices, may not be stopped by the automatic stay.

3. Multiple Bankruptcy Filings: If you've had multiple bankruptcy filings within a year, the automatic stay's duration might be limited.

How Noyes & Associates Can Help:

If you're considering bankruptcy as a solution to your debt problems, consulting an experienced bankruptcy attorney is crucial. At Noyes & Associates, we specialize in bankruptcy law and have a proven track record of helping individuals regain their financial footing.

Our experienced attorneys will:

• Evaluate Your Situation: We'll assess your financial situation to determine if bankruptcy is the right solution for you.

• Stop Creditor Harassment: Once you decide to move forward with bankruptcy, we'll take swift action to ensure that the automatic stay protects you from further creditor harassment.

• Guide You Through the Process: Bankruptcy can be complex, with various chapters to choose from, like Chapter 7 or Chapter 13. We'll help you choose the right path and guide you through every step of the process.

Don't let creditor harassment rob you of your peace of mind. The automatic stay is a valuable tool that can put an end to the relentless calls, letters, and legal actions. Contact Noyes & Associates today for a consultation and take the first step toward financial freedom and relief from creditor harassment. Your path to a debt-free future starts here.