The Meaning of “Automatic Stay”
For most people examining bankruptcy and their options during a financial crisis, some of the terminology can be unfamiliar and confusing. An “automatic stay” is a court-ordered hold on an individual’s debts that prevents creditors from seeking payment for a period of time while the case is resolved. When an automatic stay is ordered, creditors are not allowed to threaten, harass, or sue you over debts that are owed.
Automatic stays are usually ordered shortly after a person files for bankruptcy and usually go into effect immediately after the creditors receive notice. If you are facing bankruptcy and wish to know more about your legal options, contact the Boston bankruptcy attorneys of Joshua Spirn & Associates at 1-800-975-5346.
What an Automatic Stay affects:
When an automatic stay is put in place, the following rules usually apply:
- The IRS will not pursue taxes owed.
- Landlords cannot evict, even if the tenant is behind on rent.
- Repossession of personal property must be put on hold.
- Mortgage companies cannot pursue foreclosure.
- Lawsuits and wage garnishments may be suspended.
Proceedings that are not usually affected by an order of automatic stay include: child support lawsuits, paternity lawsuits, and pursuit of debts against co-signers. Criminal proceedings also remain unaffected by orders of automatic stay, so filing for bankruptcy will not protect you from criminal charges.
Contact a Boston Bankruptcy Lawyer
If you are in a dire financial situation and are considering filing for bankruptcy, contact a Boston bankruptcy attorney of the Law Offices of Joshua Spirn & Associates at 1-800-975-5346 to discuss the specifics of your case.
