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The Automatic Stay in Bankruptcy
Written by Alan Alder   
Friday, 26 June 2009 20:10
Federal bankruptcy law is designed to provide protection from creditors. The purpose of Chapter 7 and Chapter 13 of the bankruptcy code is to provide consumers with a fresh start by freeing them from burdensome debt.
by AlanAlder


Federal bankruptcy law is designed to provide protection from creditors. The purpose of Chapter 7 and Chapter 13 of the bankruptcy code is to provide consumers with a fresh start by freeing them from burdensome debt.

The automatic stay is a very powerful tool providing protection from creditors. The automatic stay stops many creditor actions, including:

- Home foreclosure

- Repossession of cars and other personal property

- Paycheck garnishment

- Tax liens and levies

- Phone calls by creditors

- suits brought by creditors

The automatic stay puts creditor actions on hold, it does not eliminate their claim to money or property. Generally, unsecured debts will be eliminated through the bankruptcy discharge. Secured creditors, those having an interest in property you possess, will have additional rights and will be treated differently in a bankruptcy.

Information:

Are you ready to get a fresh start? Get more information about how to stop foreclosure. Alan Alder is a Nashville bankruptcy attorney.
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