Debt can be overwhelming. Not only are you tasked with finding money to pay your bills, but you also deal with a steady stream of creditor phone calls and letters, reminding you of your situation.

That's where Chapter 7 bankruptcy can help. Not only will you face the potential discharge of all that debt, but you'll be able to stop those emails and phone calls. Before you file, it's important to look at the details of how automatic stays work and what, if any, recourse your creditors have.

The Craig Black Law Firm deals with a variety of issues related to automatic stays, from creditor violations to requests to lift the stay. If you're considering filing for Chapter 7 bankruptcy, I can help. Call me at 678-888-1778 or complete this contact form, and I'll help you work through your options.

What Is an Automatic Stay?

An automatic stay puts a hold on all creditor actions against a debtor. Those include:

• Communicating with the debtor, including calls, emails, and letters
• Foreclosing on homes
• Repossessing vehicles
• Garnishing wages
• Starting or continuing legal proceedings against the creditor
• Enforcing judgments and liens
• Evicting debtors for unpaid rent

Automatic stays do have their limits, though. If you owe child support or alimony, agencies can continue to take action over nonpayment. Certain tax-related collections and criminal proceedings will also continue. If you initiate new debt after filing, those debts also won't be included in the automatic stay.

How Automatic Stays Work in Chapter 7

As soon as you file your bankruptcy paperwork, the automatic stay begins. The courts will reach out to all your creditors about the stay, and that stay will remain in effect until either your debts are discharged or your bankruptcy is dismissed.

The Notice of Bankruptcy Filing that goes to your creditors includes the case number, filing date, and the type of bankruptcy. It also issues a deadline for filing any proofs of claim and a date for the 341 Meeting of Creditors.

Can Creditors Challenge an Automatic Stay?

Creditors aren't left without recourse after receiving an automatic stay. The courts allow them two chances to be involved in the process. The first is by filing a Motion for Relief from the Automatic Stay. If the court accepts it, collection efforts can resume.

Creditors are also invited, although not required, to attend the 341 meeting. They rarely do, but if they have questions about the debtor's finances, this is the forum to ask them. The 341 meeting will not give them the opportunity to stop the automatic stay. A motion through the courts is the only way to do that.

Legal Help with Automatic Stays

If you're considering filing for Chapter 7 bankruptcy, the Craig Black Law Firm can help. I'll help you with the paperwork, as well as with any motions or violations of the stay. Give me a call today at 678-888-1778 or fill out this confidential contact form.