What is the Automatic Bankruptcy Stay?

I often explain to my Atlanta bankruptcy clients that the automatic bankruptcy stay is the key to protecting debtors from foreclosures, repossessions, garnishments, and any other harassment by creditors. The “automatic stay” is a court order that is effective immediately upon a debtor’s bankruptcy filing. The order prohibits creditors from taking actions to collect debt from debtors, which is the primary reason why most of my clients file bankruptcy. The automatic stay is provided for in 11 U.S.C. 362 of the Bankruptcy and is one of the strongest tools to protect debtors that we have at our disposal.

The automatic stay occurs immediately upon filing of the bankruptcy case and does not require a court proceeding or hearing. Within a week of the filing, the bankruptcy clerk of the court mails notice to all of the creditors that a debtor lists in his or her bankruptcy petition. Thus, if a debtor receives a phone call from a creditor the day after filing bankruptcy, the debtor simply needs to tell the creditor that he or she has filed bankruptcy and provide the case number. As for foreclosures or repossessions, the bankruptcy attorney who files the case normally contacts the creditor to stop those actions as soon as the bankruptcy case is filed. The automatic stay remains in effect until one of three things occurs: (1) the stay is “lifted” or stopped by a judge at a creditor’s request; (2) a discharge occurs; or, (3) the property at issue does not belong to the estate anymore. Post-discharge, the stay is replaced with a permanent injunction from the court that covers all pre-filing debts that were part of the bankruptcy proceeding. That means that creditors are prevented from collecting on all the debt that was discharged.

If you have filed bankruptcy in the past the 2005 amendments to the bankruptcy code may place some restrictions on the automatic stay in your case. It is important to speak with a qualified attorney and make sure to tell your attorney about any past bankruptcies. For a free consultation please contact the Law Offices of Charles Clapp at 404.585.0040.

★★★★★

Charles is absolutely a brilliant attorney! He is a critical thinker and determined problem solver. He is very accessible, even via text. If he is in court, his ability to multi-task, you can feel safe and secure in knowing he is handling any issues or concerns. I entrust him with my future, he is a uniquely talented attorney who always challenges himself to achieve the absolute best outcome for his clients.

Donna

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I was very satisfied with Mr. Clapp services. He is a man of his word and did everything he told me he would. I would highly recommend him.

Shernita

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I came to Mr. Clapp by referral with a complicated case involving both personal and business debts that were out of control. Mr. Clapp evaluated the situation and gave me options that I was not even aware of. He knows his stuff, executed flawlessly, and I have been able to start over. I highly recommend Charles Clapp if you have debt or bankruptcy issues. Listen to his advice, he knows his stuff. I consulted with several other bankruptcy attorneys prior to retaining Mr. Clapp, and they did not have the same breadth of knowledge that Mr. Clapp brought to my case.

Scott

★★★★★

I selected Charles Clapp to handle my bankruptcy based on his already positive reviews and I am glad that I did! He was very accommodating to my schedule and made my negative life experience positive. I was actually very surprised how easy he made the process. Life happens and it’s great to be represented by someone that understand that!!! Stop your attorney search with Charles Clapp!!!

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