If you are facing eviction, filing for Chapter 7 or Chapter 13 bankruptcy may be used to help delay the eviction process through the provision ‘Automatic Stay’. This provision can temporarily inhibit creditors and debt collection entities from pursuing certain debts. It can also provide other protections against aggressive debt collection practices. These advantages and protections will vary depending on a number of factors. Addressing any potential issues quickly will help to ensure that your request for automatic stay is secured and effective for your case.
What is an Automatic Stay in Bankruptcy?
The Automatic Stay can help prevent most creditors, bill collectors, and landlords from taking further actions and continuing the bill collection process.
Possible actions by creditors and collectors that can be protected automatic stay:
- Pursuing court proceedings against the debtor
- Foreclosure on a debtor’s property
- Pursuing liens against a debtor’s property
- Repossession of collateral
- Harassing phone calls
In some cases, a debtor may be able to sue a creditor that breaks the protections set in place by an automatic stay.
These protections and exceptions can vary depending on the stage of the actions against the debtor and the types of debts that are at issue. It is generally best practice to consult an attorney before taking any major actions regarding automatic stay.
When is it Too Late to Stop an Eviction Process?
In order for the eviction process to begin, your landlord must file a case and prove to the court why your eviction is justifiable. The landlord would seek a ruling from the judge, known as a judgment of possession, which allows the landlord to complete the eviction process.
Act Immediately by Contacting Malaise Law Firm
When you receive a notice for eviction, the best course of action is to act immediately. Waiting to speak to a qualified attorney can be the difference between being evicted, being granted automatic stay, and ultimately a successful bankruptcy filing. Our team at Malaise Law Firm can provide you with legal advice and service that will help you move towards the path of stability and recovery from debt.