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Automatic Stay Timeline

Sawin & Shea

It stops: Debt collection efforts Foreclosures Wage garnishments Civil lawsuits Utility shutoffs Most other creditor actions to collect pre-bankruptcy debts The stay helps facilitate the goals of bankruptcy by preventing creditor collection efforts and allowing time for orderly debt restructuring or liquidation. What is an Automatic Stay?

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The Automatic Stay and Bankruptcy

Sawin & Shea

Many people worry that bankruptcy will simply delay the inevitable, such as a lawsuit, wage garnishment, or a foreclosure, and that their creditors will still come after them. Pension loans: If you took out a loan against your pension, an automatic stay would not protect you from wage garnishment to repay the loan.

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The Automatic Stay and Bankruptcy

Sawin & Shea

Many people worry that bankruptcy will simply delay the inevitable, such as a lawsuit, wage garnishment, or a foreclosure, and that their creditors will still come after them. Pension loans: If you took out a loan against your pension, an automatic stay would not protect you from wage garnishment to repay the loan.

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How Can You File for Bankruptcy With No Money?

Sawin & Shea

With this automatic stay, your creditors won’t be able to garnish your wages, meaning that you can use your earnings to pay your installment plan. The main reason why you’ll want to hire a bankruptcy attorney is for their knowledge and experience. Fortunately, filing for bankruptcy places an automatic stay on your assets.

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How Does Bankruptcy Affect Your Job and Future Credit?

Sawin & Shea

Chapter 7 bankruptcy also stops lawsuits and wage garnishments. Chapter 13 , or reorganization bankruptcy, stops repossessions and foreclosures so you can save your home or investment. Like Chapter 7, it stops lawsuits and garnishments. Chapter 13 can help people keep assets that might be at risk in a Chapter 7.

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What Happens If You File For Bankruptcy?

Sawin & Shea

They’ll be unable to garnish your wages, foreclose on your home, and repossess your belongings. Chapter 13 and Chapter 7 attorneys have years of experience handling complex bankruptcy cases, and they can simplify the process and help you make good choices. Additionally, the bankruptcy court will assign a trustee for your case.

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Can I Keep My Home in a Chapter 7 Bankruptcy?

Sawin & Shea

Upon filing a Chapter 7, you receive automatic court-oredered protection from creditors and aren’t subject to lawsuits, repossessions, or wage garnishments. With over 75 years of bankruptcy service experience, we can help you and your family get the fresh start you deserve.