If you live in New York, and you are being harassed by creditors or collection agencies, the automatic stay part of the bankruptcy process may give you room to breathe.
What is an Automatic Stay?
Under Section 362 of the United States Bankruptcy Code https://www.usbankruptcycode.org/, as soon as you declare bankruptcy, and your paperwork is submitted to the court, an automatic stay kicks in. This prevents most people and companies from trying collect the money you owe them. Most debtors and bill collectors must immediately stop trying to call, write, or email you. Let’s look at what an automatic stay does and doesn’t cover.
An Automatic Stay Can…
The Limits of an Automatic Stay
If one of your loans has a co-signer (a co-debtor) – In Chapter 13 cases, the automatic stay will be extended to the co-debtor if they are an individual. This does not cover all debts and your co-debtor may still be held accountable.
Why You Need a Bankruptcy Attorney by Your Side
While an automatic stay can sound like the answer to prayer when it comes to being hassled by debt collectors, be aware that your creditors can fight back. They can ask the court to modifying or lift the automatic stay, giving them the ability to once again demand repayment.
Your creditors that are deterred by the automatic stay can file a case in bankruptcy court where they must meet certain standards:
Also, if the court feels that you are committing fraud or you are not paying your bills when you could, the automatic stay could be revoked. In any case, there are usually a number of hearings involved and you don’t want to go through this all alone. This is where the right bankruptcy attorney can make all the difference.
Reaching Out for Help
If you live in New York, and you’d like to talk directly to someone who specializes in creative, case-specific, out of the box, legal solutions to help guide you effectively through the bankruptcy process, reach out to New York bankruptcy lawyer Ronald Weiss for a free consultation. He can walk you through the process of getting the help you need. Call 631-271-3737 and take the first step to a fresh start.