A powerful aspect of filing bankruptcy is that it puts the automatic stay into effect. This alone restores a sense of empowerment and well-being for many debtors. Some report they can sleep for the first time in a long time, not having to fear frequent, sometimes harassing, communications from creditors.
So what is the automatic stay, exactly? The automatic stay is described in bankruptcy law as "an injunction against the continuance of any action by any creditor against the debtor or the debtor's property" (11 U.S.C. 362). Automatically, the debtor is protected against further collection activities. Specifically, creditors cannot initiate or continue lawsuits; make collection calls; repossess property; sell homes at foreclosure; garnish wages, or place levies on bank accounts.
The vast majority of creditors understand the strength and seriousness of the automatic stay and comply with the automatic stay. They may know of the stiff penalties for ignoring the automatic stay. Even if they do not know about penalties — or have not received a bankruptcy note from the court yet — they are bound by the automatic stay.
Understand The Power Of The Automatic Stay Before Embarking On Your New Jersey Bankruptcy — Request A Free Consultation With A Lawyer
From offices in Toms River and Neptune, William H. Oliver, Jr. & Associates in Monmouth County can advise you on what to do if a creditor violates the automatic stay after you file bankruptcy. You may be able to begin adversary proceedings against a violating creditor.
As needed, our law firm offers evening and Saturday appointments by request. We invite you to email us or call 866-974-1136 to schedule a consultation with a New Jersey bankruptcy attorney.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.