Instant Relief - Chapter 7 - Riverside Area Bankruptcy

The Automatic Stay that goes into effect when you file for Chapter 7 Bankruptcy is designed to give you peace of mind and a little breathing space after dealing with your creditors' demands. You do not need to do anything special in order to invoke the automatic stay in most instances - the act of filing for bankruptcy will automatically extend this protection to you. The automatic stay remains in effect throughout the bankruptcy proceedings, and once your bankruptcy is discharged, it becomes a permanent injunction, barring most of your creditors from taking any actions to collect the debt. However, if your circumstances fall into any of the following categories, you may not have full access to the Automatic Stay under the law.

If you had a pending bankruptcy case which was dismissed in the past year:

Your automatic stay only lasts for 30 days, after which point you must petition the court for an extension, or your creditors will be able to resume collection activities. Additionally, your attorney must ask the court for your initial 30 days - it does not occur automatically when you file.

If you have had two or more pending bankruptcies cases in the past year which were dismissed:

You have no automatic stay, unless the court decides otherwise. Unless you have very unusual circumstances that can adequately explain why you would have had 2 dismissed bankruptcy cases in the past year, it is unlikely that you will get relief from the automatic stay.

The automatic stay can prevent most types of collection activities, such as foreclosures, lawsuits, collection calls, wage garnishment, and repossession. However, it will not stop collection activities arising from child support issues, criminal proceedings, or legal proceedings involving property or assets that are not a part of the bankruptcy estate. Additionally, your creditors can petition the court to lift the injunction in order to continue collection activities. In some instances, particularly in the case of eviction or foreclosure, you may only be delaying the inevitable if you are unable to keep your payments current.

If a creditor knowingly violates the automatic stay, you may be entitled to collect damages as a result - therefore it is important to keep appropriate records of any collection activity that occurs during the bankruptcy process. If you need support and assistance, our premier Riverside County Bankruptcy Law Firm can help you to determine whether or not a creditor's actions violate the automatic stay. We can also provide advice to individuals who may be seeking the protection of the automatic stay along with their bankruptcy filing.

Contact us today - arrange for your free case evaluation and see if an automatic stay can benefit your situation.