What Is Automatic Stay In Bankruptcy in Springfield, MA?

Seek Legal Protection from Creditors 

In every bankruptcy case, one of the most common questions that our law office receives is, “What is automatic stay in bankruptcy?” Most bankruptcy filers are doubtful of bankruptcy relief because of this. In this article, with the help of an experienced Massachusetts bankruptcy attorney, you will learn more about the automatic stay, its definition, purpose, and how it is used in bankruptcy protection.

Whether you are dealing with hospital bills, credit card debt, student loan, or other types of debt, the Law Office of Eric Kornblum is the best bankruptcy law firm that you can rely on. Attorney Eric Kornblum has spent over two decades assisting debtors facing insurmountable debt. 

Eric assists clients who are filing for bankruptcy under Chapter 13 or Chapter 7. You can be confident that your case is in good hands with aggressive, diligent, and compassionate legal representation. If you need assistance, schedule a conversation with us now. 

Why do I need a Bankruptcy Lawyer in Massachusetts?

If you are a first-time bankruptcy filer and only know the bankruptcy basics, you should expect the law to be much more complicated. Whether you intend to file for Chapter 7 or Chapter 13 bankruptcy, you will need the assistance of an experienced bankruptcy lawyer to guide you through the entire process, especially in bankruptcy proceedings. When choosing the right bankruptcy attorney, consider the following good characteristics:

• Compassionate – Because bankruptcy involves discussing sensitive topics such as your finances, it necessitates compassion and understanding. Your bankruptcy attorney should understand how frustrating it is to be in a situation that you did not choose. Selecting a compassionate attorney is critical when filing for bankruptcy.

• Experienced – Choosing an experienced bankruptcy attorney allows you to save a significant amount of time and money. They understand how to effectively eliminate your debts without incurring large attorney fees. Moreover, if your lawyer knows and is experienced in what he’s doing, you can avoid many mistakes.

• Aggressive – You need an aggressive attorney who will fight any illegal creditor action rather than forcing you to do anything. You deserve to be protected and defended.

If you’re looking for a bankruptcy law firm with these qualities, look no further than the Law Office of Eric Kornblum. We are all about getting a good night’s sleep. As a debtor, if your debts continue to hold you back, it is best to consult with us to learn about your best legal options. 

We have over two decades of experience assisting clients who are struggling with debt. We understand your predicament, and we know how frustrating it is to be saddled with debts that you did not choose to have. If you are considering filing for a bankruptcy petition, start a conversation with us now!

What Is Automatic Stay in Bankruptcy?

An automatic stay is a bankruptcy court order that stops your creditors from initiating any collection activity after you file for bankruptcy. From the moment you file your bankruptcy petition until the day that the judges decide whether your bankruptcy case is granted or not, your creditors are not allowed to:

• Evict you;

• Repossess or take back your vehicle, appliances, and furniture;

• Attach or garnish your tax or income refunds; or

• Process a property foreclosure.

It is important to note that the creditors, under the bankruptcy code, can legally request the court to lift or take away the automatic stay. In that way, the creditors can regain their rights to pursue collection activity against you. They can also ask to hold a foreclosure auction. You will receive a letter saying that they filed a motion to lift the automatic stay. 

How Long Will It Take For An Automatic Stay To Take Effect?

Following your bankruptcy filing, the court clerk will notify all of your creditors of the automatic stay. In the state of Massachusetts, an automatic stay will take effect in two weeks. If you have ongoing litigation or wish to notify specific creditors about your automatic stay as soon as possible, your bankruptcy attorney can assist you.

What Are The Essential Exceptions To Automatic Stay?

The Automatic stay, like any rule, has exceptions. As stated in the preceding section, creditors may petition the court to lift the automatic stay and resume debt collection activities. A landlord can usually evict you as well. One of the reasons you should seek the advice of a Massachusetts bankruptcy attorney is to protect yourself from these exceptions.

Relief From The Automatic Stay

Relief from the automatic stay may be granted by the bankruptcy court at its own discretion or upon request from an interested party after the notice and hearing. The interested parties seeking relief from the automatic stay are typically secured creditors. It is their responsibility to request relief from the stay prior to taking any action against the debtor or its property. A responsible creditor will always do so; otherwise, they are risking themselves by violating the automatic stay.

Even though the courts are hesitant to grant relief from the automatic stay early in a bankruptcy petition, there are several reasons why creditors should consider early relief from the automatic stay:

• Some courts have previously decided that the right to get adequate protection is not to be given until a creditor seeks relief from the automatic stay.
• According to the bankruptcy code, the automatic stay is lifted for the party requesting relief 30 days after the request, unless the court issues an order to continue the automatic stay.
• Seeking relief early on can create a basis for establishing the cause validating relief from the automatic stay. The cause may include many reasons, such as misconduct, undue delay, waste, or mismanagement. If an early relief request is not granted, a request later on can emphasize the debtor’s lack of progress during the bankruptcy case, using the first request as a reference.

Call our Massachusetts Bankruptcy Attorney Now!

The bankruptcy process, including its rules and regulations, is inherently complicated. Before filing for bankruptcy, you must fully understand not only the bankruptcy basics but also all of the technicalities, including the complexity of your case. This, however, cannot be accomplished overnight. Bankruptcy is one of the most complex areas of the law, which is why you need an experienced bankruptcy lawyer who has spent years studying and decades practicing it.

For over 25 years, the Law Office of Eric Kornblum has been providing wise guidance and effective assistance to the residents of Massachusetts struggling with debt. We treat our clients with respect. Our legal team will listen carefully to your concerns because we certainly understand how frustrating it is to have financial challenges. With diligent legal help, your case will surely get the best possible results. 

Aside from automatic stay, we can also help you with Chapter 7 bankruptcy, Chapter 7 Means Test, Chapter 13 Bankruptcy, Life After Bankruptcy, Bankruptcy Exemptions, Bankruptcy Homestead Law, Debt Negotiation, Garnishment, Student Loan, and many more! Start a conversation with us now.