Therefore, I have determined that my experience as a bankruptcy attorney in Phoenix qualifies me to serve as your translator (you can appreciate me later). What is the bankruptcy 'term' of the day? Automatic Hold.
11 U.S.C. 362 stipulates that the filing of a bankruptcy case initiates an injunction against the continuation of any creditor action against the debtor's property.
""""Huh,"""" you may ask? This means that as soon as your bankruptcy petition is lodged, you are entitled to protection from your creditors. This prohibits creditors from pursuing legal action against you and your property.
Upon consideration, this makes sense. See, the purpose of bankruptcy is to systematically resolve your liabilities with all creditors so that their rights are respected while your debt burden is eliminated. If one creditor could take action against you during the bankruptcy, such as repossessing your vehicle, they would receive a better bargain than the other creditors.
I'm willing to wager that at least a few of you are pondering, in the words of Chandler Bing, """"Could you BE more vague?"""" So, what does 'barring action' refer to? The automatic stay precludes the following while it is in effect:
Beginning or Continuing Law Suits Garnishments
CALLS INVOLVED IN COLLECTION (Notice the boldface? This is a tremendous benefit for those being harassed by creditors.
This appears to be too wonderful to be true, correct? As the saying goes, all excellent things must come to an end, including the automatic stay. The automatic stay is only in effect until the debtor is discharged, the property in question is excluded from the bankruptcy estate, or the judge lifts the stay at the creditor's request.
A significant exception is the fact that a creditor may file a motion with the court requesting a relief of the automatic stay. However, it is not as simple as sending an email titled """"Hey Judge, Can you do me a favor....?""""
The creditor must provide justification for the lifting of the stay. This may involve demonstrating that the creditor's interest in a particular asset is inadequately protected or that the debtor has no equity in the asset. The situation in which a secured creditor seeks relief to prosecute a foreclosure or car repossession may pertain to you.
Therefore, if you face foreclosure or repossession and wish to eliminate debt, it may be time to consult a bankruptcy attorney. I am an accomplished bankruptcy attorney who can help you determine if filing for bankruptcy is your best financial option.""
" - https://www.affordablecebu.com/