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Why the Bankruptcy Automatic Stay Is Important

Why the Bankruptcy Automatic Stay Is Important
"The automatic stay is one of the most important and advantageous aspects of the bankruptcy procedure. Essentially, as soon as you file bankruptcy with the court, an automatic stay is issued. This indicates that wage garnishments, repossessions, and foreclosures have ceased. In addition, your creditors are now prohibited from contacting you, and if they do so, they risk a fine for violating the terms of the automatic stay.A common concern is whether you should personally notify your creditors of the automatic stay imposed by your bankruptcy. I would recommend that you do so if, for instance, you have an impending repossession. If a company inadvertently repossesses your vehicle, for instance, while you are under the protection of the bankruptcy automatic stay, you will likely be able to get it back, but this creates more work for you and your attorney and should be avoided if possible.As a result, I would advise you to notify any auto finance companies attempting to repossess your vehicle and your employer if you are currently experiencing wage garnishment after filing for bankruptcy. According to federal law, your employer cannot discriminate against you based on your bankruptcy filing, so you should not have to fret about or even consider this when notifying your employer. Of course, these occurrences do occur occasionally.Notifying the finance company that is attempting to repossess your vehicle of your intention to declare bankruptcy before you actually do so is probably not a good idea. This may merely encourage them to complete the repossession sooner, while they still have the legal right to do so and prior to your filing. As a result, I would advise you to wait until your automatic bankruptcy stay has taken effect.
" - https://www.affordablecebu.com/

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"Why the Bankruptcy Automatic Stay Is Important" was written by Mary under the Finance / Wealth category. It has been read 114 times and generated 0 comments. The article was created on and updated on 01 June 2023.
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