Automatic Stays & Bankruptcy

One of the most important and necessary benefits of filing for bankruptcy is the automatic stay. Automatic stays are court orders that grant the bankruptcy filer relief from most creditor attempts to collect on a debt. In other words, no more calls from banks or collection agencies and no more eviction or foreclosure proceedings.

Automatic stays prevent the following from occurring:

• Home foreclosures
• Most evictions
• Vehicle repossession
• Utility disconnections
• Attempts to obtain property from your estate
• Collection of benefit overpayments (e.g. welfare)
• Collection of debts incurred prior to bankruptcy filing
• Ongoing litigation that began before filing
• Lien enforcement on

Automatic stays have benefits for both creditors and filers. For creditors, an automatic stay makes sure that every creditor has a fair chance to be paid back through the court system. For filers, an automatic stay is a chance to breathe again, a chance to enjoy life without constant calls or notices from collectors. It also ensures that you’ll continue to have a place to live and a vehicle to get around while your bankruptcy proceeds.

How Long Does It Take for an Automatic Stay to Take Effect?

As soon as your bankruptcy is filed, the court clerk will notify all your creditors of the automatic stay. In Massachusetts, you should expect your automatic stay to take effect within two weeks, as creditors receive notice of your bankruptcy. If you have pending litigation or want to let certain creditors know about the automatic stay immediately, your attorney can notify creditors personally.

Are There Exceptions to Automatic Stays?

Yes. Creditors can file a motion with the court to request an exception be made in their situation. If the court grants their motion, then some creditors may be able to pursue you for what you owe them. In certain cases, a landlord may be able to evict you as well. Protecting yourself from potential exceptions is why you’ll want a Massachusetts automatic stay lawyer in your corner.

At Miller Law Group, P.C., our team of bankruptcy lawyers help our clients achieve financial security through bankruptcy law. Our understanding of the courts, our knowledge of the law, and our experience with trial advocacy makes us uniquely equipped to help you find debt freedom. With our help, we’ll be able to file your bankruptcy and ensure your automatic stay wards off all creditors—including any who might seek to collect their debt regardless.

To get a free consultation regarding your financial options, speak with our Massachusetts automatic stay attorneys at (508) 502-7002.