STEP 4 – The Automatic Stay

Second Office Appointment

After we have compiled your paperwork, we will have your Bankruptcy Petition prepared and ready for your signature. You will again meet with your attorney at our office and received you case number, which is assigned by the court. Having a bankruptcy case number allows you to have a court protection called The Automatic Stay.

The Automatic Stay
The Automatic Stay is an instant injunction that halts all attempt by creditors to collect on debts, with some exceptions. If the automatic stay has been put into effect and a creditor continues with collection efforts, you can take legal action in court.

Here are a list of the protections you will receive:

  • Prevents repossession of property
  • Bars IRS collection activity
  • Prevents eviction
  • Prevents or pauses foreclosure proceedings
  • Stops wage garnishments
  • Stops creditor harassment

The automatic stay will last throughout the duration of the bankruptcy process, with one exception. If you previously filed bankruptcy in the past year, the injunction will last 30 days. This law was designed to prevent people from abusing the bankruptcy system.

Continue to STEP 5 – 341a Trustee Meeting.