The automatic stay is one of the most important aspects of the bankruptcy law. Once a petition for bankruptcy is filed by a debtor, the automatic stay is immediately in place. This means all collection activity must stop, and a creditor may be punished for ANY collection activity that occurs, even if they did not have notice of the bankruptcy. Under the stay debt collection includes:
- Initiation of Debt Collection Lawsuits
- Mortgage Foreclosures
- Repossession
- Debt Collection Lawsuits already in-progress
- Garnishment Actions
- Debt Collection Phone Calls
- ACH on any account
This feature of bankruptcy gives you a much-needed break from stressful and harassing phone calls. The automatic stay continues until the bankruptcy is completed, relief from the stay is granted to a particular creditor, or the debtor receives a discharge. Violations of the automatic stay can result in substantial penalties for creditors, including damages for emotional distress and punitive damages.
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Call Our Office at (718) 530-0210 or 1-866-402-8476
Money problems are not a sign of failure or weakness---you can use bankruptcy to help recover when your finances are out of control. Contact a bankruptcy lawyer at Rosenberg, Musso & Weiner, L.L.P., located in Brooklyn, New York. Call Our Office at (718) 530-0210 or 1-866-402-8476 or fill out our online contact form in order to give our bankruptcy lawyers more information about your individual finances.
To learn more about bankruptcy, you can also visit our Frequently Asked Questions page
Rosenberg, Musso & Weiner, L.L.P., located in Brooklyn, New York Bankruptcy Attorneys
