Posts Tagged ‘automatic bankruptcy stay’

3 Things That You Must Know About Bankruptcy Stay

Bankruptcy stay is one of the biggest benefits that you get when you file a petition to get bankrupt. As soon as your case is filed, the laws impose an automatic stay on all your creditors, restricting them from contacting you and forcing you to make the repayments of the debts that you owe to them. If you still get collection calls, you have the legal right to file a lawsuit against the debt collectors accusing them of harassing you while you have already filed for bankruptcy. The stay thus provides you temporary protection, at least until the final judgment comes in. The provisions regarding this are applicable in every case, irrespective of which chapter you are filing your petition under.

Limitations

When it comes to implementing bankruptcy stay, there are certain limitations that you need to be well aware of. It will not protect you from every financial or legal hassle that you are currently dealing with. For example, if there are family court proceedings, tax audits, and criminal cases running against you, you will still have to deal with the same. The stay will not stop all these actions. In most cases, it will only provide you protection against those debts that are dischargeable under bankruptcy. You may still get collection calls for the repayment of student loans because these loans are not discharged even when you go bankrupt.

Which Types Of Creditors Can Seek Relief From This Legal Stay?

Those who are co-owners of your properties, those who have tort claims against you, and those lenders who provide you secured loans may request the court for a relief from bankruptcy stay. The laws have been designed in a way that offers benefits and security not only to the debtors but also to the creditors. But, none of them can go against the stay once it is imposed. It is only up to the court to decide if they should get some relief or not. Even a single creditor may file a motion in this regard. The relief can be provided in various forms, such as conditioning, termination, and modification. If the stay is terminated, it means there are no restrictions on creditors who qualify for it. They can go ahead with their legal actions and force the debtor for the repayment of their debts. They can even sue the debtor if that seems to be a suitable option. Conditioning on the other hand refers to a situation where the creditor must first get approval from the trustee before taking any action.

The main objective behind having the provision of automatic bankruptcy stay and then the option to provide relief to specific creditors is to make sure everyone gets the justice – both the creditors as well as the debtors.


Custom Search
Bankruptcy

Basic Things You Must Know About Bankruptcy Dismissal

When you file a petition for bankruptcy and the court rejects your petition on certain grounds, it is legally termed as bankruptcy dismissal. Dismissal means your case is officially closed and that the court will make no further rulings on your case. Some of the most common reasons why a petition is...

Bankruptcy
Credit Repair

Building Credit With No Credit

When it comes to building credit with no credit, there are several online canadian pharmacy factors that you need to take into account. Just because you do not have any credit history at present, it does not mean you will never have one. No one is born with a readymade credit history. You have to gi...

Credit Repair

A Loan To Defeat All Loans Debt Relief Loan
Payday loans fax-free payday loans and instant online payday loans are everywhere be it on the Internet newspapers or television. Today when the economy is in turmoil these loans look like the saving gra... Read more

Tips On How To Consolidate Payday Loan Debt
You may need to consolidate payday loan debt when you are caught in the middle of a financial crisis arising out of your inability to repay multiple loans. Debt consolidation loan allows you to consolidate all... Read more

Do Not Put Up With Debt Collectors Harassment
There was an emergency and the need arose to take a payday loan. It seemed to be the fastest and the best option available then. However now the debt collectors harassment is horrendous. The fact that using t... Read more

Consolidate Payday Advances To Save Yourself
Payday advances are loans taken against a persons paycheck. They have a way of digging into your paycheck month after month. They usually have exorbitant interest rates though the sites offering the services... Read more

Can I Consolidate Payday Loans
Can I consolidate payday loans is a question you are sure to ask yourself when faced with a trying financial situation. When payment of loans becomes difficult it is possible to consolidate and replace many... Read more

What are the pros and cons of debt consolidation?