Bankruptcy Automatic Stay
Posted By
Trey Cain on May 7, 2011 5:51am PDT
The automatic stay provisions of the U.S. Bankruptcy Code (See 11 USC §362) are some of the most powerful protections provided to a person or business filing a bankruptcy petition. It does not matter what Chapter you file under or whether you are an individual or business. The automatic stay goes into effect the second your petition is filed, and because your petition is filed electronically from your bankruptcy attorney's office, the automatic stay can go into effect at any time during the day or night depending upon when the petition is submitted.
The automatic stay requires all creditors who are trying to collect debts to immediately cease ALL collection activity. They cannot call, write, harass further, or make any further attempt whatsoever to collect any money you owe. The penalties to creditors for breaking the rules promulgated by the automatic stay are very severe. They can range from monetary sanctions, voiding the creditors debt, or even criminal prosecution in extreme cases. The Bankruptcy Code is often a person's most powerful ally in discharging or restructuring personal or business debts. It provides breathing room during the time it takes to get everything done. When used properly, the Bankruptcy Code can indeed give you a fresh start and change your life.
To creditors, you are an account receivable, a number, a mere blip on the radar screen of their business plan. Individuals should approach their financial system similarly; think of your personal economic circumstances as a business. Use the tools that are available to you to make good business decisions. When debts become unmanageable and your credit is already damaged, filing bankruptcy can be a good business decision. The automatic stay and other provisions of the Bankruptcy Code are excellent tools in your tool kit to use to your benefit. Contact a bankruptcy lawyer in Franklin TN at
Cain & Associates, PLLC to find out how you can use these tools and get a fresh start in life.