Boston Bankruptcy Lawyer

The Automatic Stay

Creditors can sometimes be ruthless and unsympathetic. Unfortunately, this can sometimes lead to you losing some very important things. Your electricity, your vehicle, and even your home can be taken away from you if creditors do not get paid in time. However, there is a way to keep this from happening.

This is called the automatic stay. When you file for bankruptcy, the automatic stay kicks in. This is a form of protection against things like utility disconnections, eviction and foreclosure. However, there are also things that the automatic stay will not be able to stop for you. These can include things like tax proceedings, criminal proceedings, and support actions.

If your utilities are close to being disconnected, the automatic stay can prevent this for at least 20 days. It may not be worth it to file bankruptcy over the cost of a utility bill, but often this is just one of many factors. In addition, foreclosure can be prevented by the automatic stay. If your creditors are trying to foreclose on your home, filing for bankruptcy can keep the foreclosure from occurring in most cases.

There are, however, things that the automatic stay cannot do. If there are any support actions against you, you will not be able to have them dismissed through the automatic stay, and will most likely have to pay the back payments. This is similar for most legal proceedings taken against you whether criminal or tax related.

A Boston Bankruptcy Lawyer Can Help

If you would like to know more about the automatic stay and how it can help you, contact the Boston bankruptcy lawyer of Joshua Spirn & Associates at 800-975-5346.