Lombard, Illinois Bankruptcy Attorneys

How the Automatic Stay in Bankruptcy Can Bring Immediate Debt Relief

As soon as you file for bankruptcy, an automatic stay goes into effect halting creditor collection activity. The stay is a powerful tool that can provide immediate relief from harassing phone calls, collection letters and much more. Each circumstance is different and there are certain debts that are not impacted by the stay. To find out if an automatic stay would help in your situation, it is best to speak with an experienced bankruptcy lawyer.

For over 40 years, Mevorah Law Offices LLC has helped individuals facing financial difficulties in Chicago and throughout Northern Illinois. Our award-winning lawyers have extensive experience with all types of bankruptcy and non-bankruptcy solutions; including Chapter 7 bankruptcy, Chapter 13 bankruptcy, small business bankruptcy, bankruptcy in divorce, and bankruptcy alternatives. We also have in-depth knowledge of the automatic stay in bankruptcy and how it can help individuals who are drowning in debt.

We understand that there is no “one size fits all” solution to your financial troubles, and we take the time to thoroughly assess your situation and develop the most practical solution. Our attorneys are honest, compassionate, accessible and approachable. Our clients appreciate our down to earth approach and unwavering commitment to protecting their interests. When you work with us, we have no pre-set agenda; our only priority is finding the most effective way to put an end to your financial difficulties.

What Collections Can Be Stopped with an Automatic Stay?

Automatic stays can put an immediate end to private creditor collection activity. This may include:

• Collection Calls;
• Collection Letters;
• Foreclosures;
• Vehicle Repossessions;
• Garnishments and Wage Levies;
• Evictions; and
• Utility Disconnections.

Creditors may ask the court to lift the stay, and in some cases their request is granted. If no such request is filed and a creditor continues collection activity in violation of an automatic stay, they can be held accountable and could even be required to pay monetary damages.

Debts that are not considered “dischargeable” through bankruptcy are not covered by the automatic stay. These may include:

• Student Loans;
• Certain IRS Tax Debts;
• Child Support;
• Loans from Most Pensions, IRAs and 401(k)s; and
• Non-Monetary Punishments from Criminal Proceedings.

If you have already filed bankruptcy within the past year and the case was dismissed, the automatic stay is only in effect for 30 days. To have it extended, you must petition the court and demonstrate that your second filing is made in good faith. If this is your third (or more) filing within the past year, the stay will not go into effect at all without a demonstration of good faith. If this is your first filing within the past year, the automatic stay ends when the bankruptcy proceeding ends. If your bankruptcy filing resulted in the debt being discharged (as should be the case for most unsecured debts when you file for Chapter 7), there is no future collection activity.

Call Our DuPage County Bankruptcy Lawyers at 630-932-9100630-932-9100

Having an automatic stay placed on creditor collection activity is welcome relief and allows you and your family to regroup and put together an effective plan of action, without the immediate pressure to pay off your debts. At Mevorah Law Offices LLC, we help our clients, through the best possible legal means, to obtain both immediate and long-term financial relief. For a free consultation with one of our skilled Illinois bankruptcy lawyers, contact our office today at 630-932-9100630-932-9100.

Pursuant to 11 U.S.C. §528, Mevorah Law Offices LLC is considered a debt relief agency. We will proudly help you file for bankruptcy relief under the Bankruptcy Code if we believe it is in your best interest.