How long is an automatic stay in bankruptcy?

Filing for bankruptcy automatically protects the debtor by providing him with an automatic stay. An automatic stay means the debtor or debtors filing for bankruptcy are legally protected from creditors attempting to collect on what is owed to them. This automatic stay remains in effect, protecting the debtor, until the bankruptcy case is officially discharged, meaning it has gone through court and is considered official.

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Does a bankruptcy filing stop a wage garnishment?

A bankruptcy can stop a wage garnishment, but will not always stop all garnishments. When you file bankruptcy, an automatic stay goes into affect mandating that all collections activities against you cease immediately. This includes wage garnishments. However, there are some types of debts that cannot be included in a bankruptcy filing and that will neither be discharged in a Chapter 7 nor become part of a Chapter 13 bankruptcy repayment plan, therefore the wage garnishment may continue.

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Can utility companies shut off service during bankruptcy?

A utility company may not shut off service solely because you file bankruptcy or because you owe them money at the time you file bankruptcy. However, if you or the bankruptcy trustee does not give them an adequate deposit or other assurance of payment within 20 days after filing, the Bankruptcy Code allows them to shut off service.

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Can a creditor obtain relief from the automatic stay in a bankruptcy?

When an individual files for bankruptcy, he or she is immediately put under a legal protection referred to as an automatic stay. This automatic stay means that creditors cannot attempt to collect money from the person until the discharge or dismissal of the bankruptcy takes place. A creditor does have the option of appealing to the court and requesting relief from the stay, meaning they ask to be allowed to pursue what they are owed even during the bankruptcy.

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Automatic Stay in Bankruptcy – Stopping Creditors

An automatic stay, in bankruptcy, halts all attempts to collect any debts from you. This includes existing lawsuits, repossessing your car, and garnishing your wages. If any creditor continues on with collection efforts, you may take legal action through the bankruptcy court.

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Suing Someone Who Just Filed Bankruptcy

Many times bankruptcy is filed in order to stop a lawsuit. Once a person or business files for bankruptcy, there will be an “automatic stay” put on the debtor’s debts. The automatic stay is a legal tool that protects the person you are suing. This means that if the debtor lists you as a creditor (and sometimes even if they don’t), you may have no legal right to collect a judgment from him, even in pending litigation.

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The Bankruptcy Automatic Stay

The automatic stay is a rule that prevents any creditor from doing anything at all to enforce a claim against a debtor during the bankruptcy case. An automatic stay will stop most creditors from pursing you during your bankruptcy case.

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