The Automatic Stay Explained
The single most powerful thing that happens in a bankruptcy case happens immediately, before any hearing and before any plan. It is called the automatic stay (11 U.S.C. § 362), and it is the law that finally makes the phone stop ringing.
What the stay freezes
- Collection calls and letters
- Lawsuits and judgments in progress
- Wage garnishments
- Foreclosure sales
- Vehicle repossessions
- Most utility shut-offs
Not a polite request
The stay is federal law, and violating it has consequences: an individual injured by a willful violation can recover actual damages, and in appropriate cases punitive damages. There are limits, child support proceedings continue, and repeat filings can shorten the stay, which is exactly the kind of detail a consultation sorts out. Read the full article on this page.
By Dalton Stanley · About the author · More from the blog
Talk to a local bankruptcy attorney
Call or text (276) 409-5541 (or send us a text) · Email [email protected]
Office: 156 Ky Oil Village, Betsy Layne, KY 41605 (by appointment only) · Book your free, no-obligation consultation.
Explore: Home · Chapter 7 Bankruptcy · Chapter 13 Bankruptcy · Chapter 7 vs Chapter 13 · Debts FAQ · Blog · About Dalton Stanley · Contact · Service areas
Dalton Stanley is the attorney responsible for the content of this website. Principal office located at 156 Ky Oil Village, Betsy Layne, KY 41605. The information provided on this website is for general educational and informational purposes only and does not constitute formal legal advice. Viewing this website or submitting a contact form does not create an attorney-client relationship. Licensed to practice law in the Commonwealth of Kentucky. THIS IS ADVERTISING MATERIAL. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.