Automatic stay
The automatic stay takes effect upon filing of your bankruptcy case. The stay acts as an injunction from most all types of creditor collections efforts. The automatic stay protects the debtor’s property from creditors.
There are numerous actions a creditor could take that would violate the automatic stay and subject that creditor to penalties for the violations. Harassing phone calls, repossession efforts, starting or maintaining a lawsuit, foreclosures, wage garnishments etc are examples of violations of an automatic stay. If any of these have happened to you and you want redress, you should seek the advice of an experienced bankruptcy attorney. An attorney can get your case filed as quickly as possible and prevent your creditors from taking part in the above proscribed activity.
An automatic stay once in place is not perpetual. The stay can be removed for various reasons. Often creditors will seek to obtain relief from the stay under certain circumstances. Sometimes an item of collateral can be removed from the bankruptcy estate. If this happens the automatic stay no longer pertains to that item of property. An automatic stay will also be removed upon a discharge.
Creditors often violate an automatic stay due to a lack of knowledge. Once your case is filed it will take several days to provide notice to your creditors. During this time period, creditors may call you or try to obtain your property. A debtor simply needs to provide the creditor with their bankruptcy filing information. In most cases creditors will stop any further action. However, if a creditor willfully violates the automatic stay you should take action immediately. A creditor can be held liable for actual damages from the violation and in certain cases depending on the severity of the violation, be held liable for punitive damages in addition to actual damages.
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