Good creditor!

The Automatic Stay Stops Creditor Harassment

Creditors are like dogs, really mean dogs. They bark and bark and bark. Problem is that your creditors don’t respond to commands nearly as well as your dog. When you tell them to “SHUT UP”, they generally don’t comply, they just continue barking. Don’t you wish getting creditors off your back was as simple as training your pooch? Well, it can be.

Those who have been forced to file for bankruptcy due to overwhelming credit card debt, medical bills or the loss of a job are usually also being harassed by their creditors. While bankruptcy is an important life decision, not to be lightly entered into, it does afford tremendous protection from creditor harassment. The instant a bankruptcy case is filed, an injunction is put in place, called the automatic stay. The automatic stay prevents your creditors from continuing with any collection activity. Once you’ve filed for bankruptcy, your creditors cannot call you, they cannot sue you, they cannot foreclose on you. In fact, if your creditors violate the protections of the automatic stay, you can sue them! The Bankruptcy Court transforms a viscous, barking creditor into a well behaved, docile creditor.

Beware of Creditor: The Stay is Not Permanent

You know what they say, you can’t teach an old dog new tricks. Your creditors are used to barking and they’ll do just about anything to take off the muzzle slapped on them by the Bankruptcy Judge. Beware of creditor! The automatic stay does not last indefinitely. In a chapter 7 case, it is lifted when the case concludes or when a creditor successfully files a motion to have it lifted. Similarly, the chapter 13 bankruptcy stay will last for the entire life of the case (between 3-5 years), unless it is successfully challenged. One of the common scenarios that leads to the stay being lifted is a mortgage that is past due. Bankruptcy does not forgive the obligation to pay your mortgage if you wish to keep your home. If you’ve fallen behind, your mortgage holder can file a motion to challenge the stay and have it lifted so they can proceed with foreclosure.

If you’ve been hearing a little too much barking out of your creditors lately, talk to a bankruptcy attorney about obedience school.

 

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