Highlands Ranch and Littleton Bankruptcy Attorney: What is Automatic Stay?
What is the automatic stay in a Highlands Ranch and Littleton Chapter 7 or Chapter 13 bankruptcy? The moment you file a Chapter 7 bankruptcy or Chapter 13 bankruptcy in Littleton, or Arapahoe County, an automatic stay protects you from:
- Collection agencies
What Does an Automatic Stay Prevent in Bankruptcy in Aurora, Littleton, Centennial?
An automatic stay in bankruptcy in Littleton, Aurora and Centennial restricts creditors from continuing collection calls, filing lawsuits, conducting a foreclosure, or garnishing (taking away) wages. An automatic stay can also help prevent a utility shut-off, home foreclosure, and eviction from your apartment or townhome. This keeps you safe while the bankruptcy process takes place and helps give you the best, fresh start possible.
What Can’t the Automatic Stay Prevent in Littleton Bankruptcy?
In Littleton, there are still things the automatic stay cannot prevent, such as:
- Criminal proceedings
- Some tax proceedings (such as if the IRS audits you)
- Multiple bankruptcy filings (under some circumstances)
Ceditors can also still ask to lift the automatic stay by filing a Motion for Relief from Stay, if they can argue the automatic stay is not being utilized properly. It’s important you always consult an experienced Chapter 7 or Chapter 13 bankruptcy lawyer if you are considering a Chapter 7 or Chapter 13 bankruptcy and learn how an automatic stay works.