What is an Automatic Stay?

When you are filing for bankruptcy you will often hear the term "automatic stay." You should become familiar with this term even if it does not apply to your situation.

This is an important form of protection that is given to debtors who qualify for Chapter 7 or Chapter 13 bankruptcy. It stops creditors from their ongoing attempts to collect from you. Once you have filed your bankruptcy petition and have been approved, you will then have proof that you can show to creditors that continue their collection attempts. You will not have to endure any more harassment - whether in the form of mail, phone calls or otherwise - from creditors saying they will take legal action. This is one of the biggest reasons why many people opt for bankruptcy as a last- ditch effort to clear their debts.

This automatic stay remains in effect to the end of your bankruptcy so long as you follow all of the guidelines as outlined by a judge. If you are not successful during your bankruptcy period, meaning that you don't adhere to all of the actions that a judge has instructed you to complete, then these calls could start happening again.

To learn more about automatic stays, contact our legal team to discuss your case with a Chicago bankruptcy lawyer.