One of the primary benefits of filing a bankruptcy case is the automatic stay. The stay goes into effect as soon as you file your Chapter 7 of Chapter 13 petition and it protects you from further collection activity. In other words, the stay shelters you from the harassing telephone calls, demand letters, lawsuits and other tactics used by debt collectors.
The automatic stay has limitations, however, so it is important to understand the financial matters that may not be halted by your filing. Examples include certain family court proceedings, tax audits and criminal court proceedings. For more information, read our blog titled “Caution! Bankruptcy Doesn’t Halt ALL Lawsuits.”
It is also possible for a creditor to ask the court to lift the stay as it applies to the creditor’s specific debt. If the court grants a creditor’s motion to lift the stay, the creditor can proceed with certain actions against you. For example, if you do not pay your vehicle loan and you do not have insurance coverage on it, the court may allow your lender to repossess the car.
The bankruptcy laws were created to protect debtors, but they also provide protections for creditors. Thus, it is important to confer with a seasoned bankruptcy lawyer to understand how the automatic stay will apply in your filing.
The “defender of the little guy,” DeLadurantey Law Office. LLC. handles bankruptcy matters (Chapter 7 and Chapter 13) in Milwaukee, South Milwaukee, West Milwaukee, and Milwaukee County, including the municipalities of Bayside, Brown Deer, Cudahy, Fox Point, Franklin, Glendale, Greendale, Greenfield, Hales Corners, Oak Creek, River Hills, Shorewood, St. Francis, Wauwatosa, West Allis, and Whitefish Bay. The firm also can handle your debt negotiations, debt relief, and mortgage loan modifications. Contact DeLadurantey Law Office, LLC by phone: (414) 377-0518. Like us on Facebook.