The automatic stay is one of the most important aspects of the bankruptcy law. Once a petition for bankruptcy is filed by a debtor, the automatic stay is immediately in place. This means all collection activity must stop, and a creditor may be punished for ANY collection activity that occurs, even if they did not have notice of the bankruptcy. Under the stay debt collection includes:
- Starting an New Debt Collection Lawsuit
- Mortgage Foreclosures
- Repossession
- Debt Collection Lawsuits already in-progress
- Garnishment Actions
- Debt Collection Phone Calls
- ACH on any account
This feature of bankruptcy gives you a much-needed break from stressful and harassing phone calls. The automatic stay continues until the bankruptcy is completed, relief from the stay is granted to a particular creditor, or the debtor receives a discharge. Violations of the automatic stay can result in substantial penalties for creditors, including damages for emotional distress and punitive damages.
When you’re ready to get out from under the crushing debt load and begin a new debt-free life, contact Dallas bankruptcy lawyer Rustin Polk by clicking here. Tell our Appointments Coordinator, Kimberly, that you are a website reader and she will set you up with a free, no obligation appointment to learn how we can help you.