How Long Does the Automatic Stay Last?
One of the benefits of filing for bankruptcy is that, as soon as you file, a type of injunction known as the automatic stay takes effect. If you have already begun to do research into the bankruptcy process, or you have friends or family members who have sought bankruptcy protection, you may already know about the automatic stay. It is an extremely powerful tool that stops creditors and debt collectors from taking action against you as soon as it takes effect. For so many debtors who file for bankruptcy, the automatic stay puts an immediate end to extremely stressful situations involving lawsuits, constant contact from creditors, and other pending legal actions.
Yet if you are considering bankruptcy, you may be wondering: how long does the automatic stay last? Our experienced West Palm Beach bankruptcy attorneys can explain, and we are here to speak with you today about your bankruptcy options once you are ready.
Getting the Facts About the Automatic Stay
The automatic stay goes into effect as soon as a debtor files a bankruptcy petition, and it halts all actions taken against the debtor by creditors or debt collectors. That includes putting a stop to any existing lawsuits, existing wage garnishments, foreclosure proceedings, and related actions. It also prevents creditors and debt collectors from contacting you to collect the debt. In addition, it prevents creditors and debt collectors from taking any new legal action, such as filing a lawsuit or initiating a foreclosure proceeding.
Duration of the Automatic Stay in Bankruptcy Cases
How long does the automatic stay last? The duration can vary depending on the type of bankruptcy and the specific details of a case. Generally, however, in Chapter 7 and Chapter 13 cases, it lasts until debts are discharged.
When the Automatic Stay Can Be Lifted
The duration of the automatic stay may be cut short in bankruptcy cases where a creditor asks the court to lift the automatic stay and the court agrees. The automatic stay can only be lifted if a creditor files a motion to lift the automatic stay, and the injunction will only be lifted for that creditor if the court agrees. The court can deny the motion, and you will have an opportunity to defend against any motion to lift the automatic stay filed by a creditor.
Most often, when an automatic stay is lifted, it is for a secured creditor in a Chapter 7 case, or in relation to a nondischargeable debt.
Contact Our West Palm Beach Bankruptcy Lawyers Today
Do you have specific questions about the automatic stay and its application to your bankruptcy case? Or do you have general questions about bankruptcy eligibility and what to expect in the process? An experienced West Palm Beach bankruptcy attorney at Kelley, Fulton, Kaplan & Eller can talk with you today to learn more about your current financial circumstances, advise you on your bankruptcy options, and answer any questions you have. As soon as you are ready to file for bankruptcy, our firm is here to assist you throughout the process.
Source:
law.cornell.edu/uscode/text/11
