Learn how you can use the Automatic Stay to stop all collection efforts from creditors. Call the experts at Phoenix Law in Livonia, Michigan, to know which steps you should take before filing for bankruptcy.
The Automatic Stay is one of the most powerful tools in bankruptcy.
In most situations, the actual filing of the bankruptcy case itself automatically stays collection and other actions against the debtor, the debtor’s property, and codebtors. This means that by simply filing a Chapter 7 or Chapter 13 Bankruptcy we can immediately stops foreclosures, garnishments, lawsuits, and any other collection activity.
Your creditors are all mailed a notice making them aware that they cannot take the following actions against you:
“Prohibited collection actions against the debtor and certain codebtors are listed in Bankruptcy Code §§ 362 and §§1301. Common examples of prohibited actions include contacting the debtor by telephone, mail or otherwise to demand repayment; taking actions to collect money or obtain property from the debtor; repossessing the debtor’s property; starting or continuing lawsuits or foreclosures; and garnishing or deducting from the debtor’s wages.”
If your creditors ignore the automatic stay, they can be penalized and liable for damages to you!
We use the Automatic Stay in a Chapter 13 bankruptcy to save our clients homes from foreclosure, to save a car that had been repossessed, and to simply help our clients get back on their feet.
It is important to note that under certain circumstances, the automatic stay may be limited to 30 days or not exist at all, although the debtor can request the court to extend or impose a stay.
With our offices centrally located in Livonia, we represent clients throughout Metro Detroit and beyond, including Westland, Garden City, Wayne, Redford, Belleville, Farmington Hills, Plymouth, Canton , Taylor, Romoulus, Northville, Commerce Township, Wixom, Dearborn, West Bloomfield and Detroit .