Duluth Bankruptcy Attorneys Discuss Automatic Stay by Nick Messe
Anyone who has ever suffered through the bankruptcy process will tell you that the worse part of the time leading up to the actual filing is the harassment and threats doled out by creditors. Late night phone calls, threatening registered letters and intimidating visits all serve to further humiliate those already suffering. This demeaning treatment makes one even more grateful for what is perhaps bankruptcy's most beneficial asset - The Automatic Stay.
The automatic stay is an action issued by the bankruptcy court as soon as it records your bankruptcy petition filed by Duluth bankruptcy attorneys. It is an immediate, although temporary, measure that stops all harassment from creditors, evictions, wage garnishments, eviction, foreclosures, legal actions due to alimony or child support or actions related to tax issues. Efforts to disconnect utilities and draft amounts from bank accounts are also stopped or "stayed". This "stay" is in effect until the bankruptcy court lifts it. While it gives the debtor temporary breathing room, some of the actions it stops may not be discharged by the bankruptcy.
Duluth bankruptcy attorneys offer these specifics as to what the automatic stay does for your financial situation:
-- Prevents the loss of utilities for at least 20 days.
-- Temporarily halts foreclosure proceedings on your home.
-- Provides some help in an eviction.
-- Prevents the collection of overpayment of public benefits
-- Stops wage garnishments, even multiple ones.
-- Prevents the IRS from issuing a tax lien or seizing property
However, as mentioned above, there are some things the automatic stay cannot do, not even temporarily:
-- Cannot stop the IRS from auditing you, demanding a back tax filing, issuing a tax assessment or demanding payment of an assessment.
-- Cannot stop a paternity test or modification of child support or alimony agreements.
-- Cannot stop criminal proceedings against you. If the crime involves both a debt and a criminal element, it will be divided into the two components and the debt part of the charge will be stayed.
-- Cannot stop monies being withheld from your salary to repay certain loans from pension funds
Creditors can get around the stay if they appeal to the court to lift the stay if he or she can prove the stay is not serving its intended purpose. For example, if you are facing a foreclosure on your home and your lender can prove that you:
-- Have no equity in your house
-- Cannot make the payments, even after the bankruptcy
-- Cannot pay off the arrearages
If any of the above items are true, the court is very likely to lift the stay and allow the foreclosure to proceed. Your Duluth bankruptcy attorneys can advise on your chances of initiating a successful bankruptcy.
When faced with overwhelming debt and the possibility of bankruptcy, Duluth bankruptcy attorneys can help get your financial situation back under control.
Article Source: ArticleSnatch Free Article Directory
Anyone who has ever suffered through the bankruptcy process will tell you that the worse part of the time leading up to the actual filing is the harassment and threats doled out by creditors. Late night phone calls, threatening registered letters and intimidating visits all serve to further humiliate those already suffering. This demeaning treatment makes one even more grateful for what is perhaps bankruptcy's most beneficial asset - The Automatic Stay.
The automatic stay is an action issued by the bankruptcy court as soon as it records your bankruptcy petition filed by Duluth bankruptcy attorneys. It is an immediate, although temporary, measure that stops all harassment from creditors, evictions, wage garnishments, eviction, foreclosures, legal actions due to alimony or child support or actions related to tax issues. Efforts to disconnect utilities and draft amounts from bank accounts are also stopped or "stayed". This "stay" is in effect until the bankruptcy court lifts it. While it gives the debtor temporary breathing room, some of the actions it stops may not be discharged by the bankruptcy.
Duluth bankruptcy attorneys offer these specifics as to what the automatic stay does for your financial situation:
-- Prevents the loss of utilities for at least 20 days.
-- Temporarily halts foreclosure proceedings on your home.
-- Provides some help in an eviction.
-- Prevents the collection of overpayment of public benefits
-- Stops wage garnishments, even multiple ones.
-- Prevents the IRS from issuing a tax lien or seizing property
However, as mentioned above, there are some things the automatic stay cannot do, not even temporarily:
-- Cannot stop the IRS from auditing you, demanding a back tax filing, issuing a tax assessment or demanding payment of an assessment.
-- Cannot stop a paternity test or modification of child support or alimony agreements.
-- Cannot stop criminal proceedings against you. If the crime involves both a debt and a criminal element, it will be divided into the two components and the debt part of the charge will be stayed.
-- Cannot stop monies being withheld from your salary to repay certain loans from pension funds
Creditors can get around the stay if they appeal to the court to lift the stay if he or she can prove the stay is not serving its intended purpose. For example, if you are facing a foreclosure on your home and your lender can prove that you:
-- Have no equity in your house
-- Cannot make the payments, even after the bankruptcy
-- Cannot pay off the arrearages
If any of the above items are true, the court is very likely to lift the stay and allow the foreclosure to proceed. Your Duluth bankruptcy attorneys can advise on your chances of initiating a successful bankruptcy.
When faced with overwhelming debt and the possibility of bankruptcy, Duluth bankruptcy attorneys can help get your financial situation back under control.
Article Source: ArticleSnatch Free Article Directory