Free Case Evaluation

 
 
X Close
Phone Call Us 414-326-9231
608-260-7133
Toll Free 866-678-9352
Text Us 414-277-7742
You can also feel free to text us at 414-277-7742 to set up your FREE appointment with our attorneys today

Automatic stay provides relief for debtors from collection activities

Last time, we looked briefly at the increased incidence of medical debt collection litigation in states with low court filing fees. As we mentioned, debt collection litigation can be very difficult and disruptive to debtors, but it is something that can be addressed in the bankruptcy process.

Once a bankruptcy petition is filed, the bankruptcy court automatically issues an injunction which prevents creditors from engaging in any debt collection activities. This includes litigation, foreclosure, and garnishment, as well as ordinary debt collection activities. Once the injunction is issued, it becomes illegal for creditors to pursue collection activities and the court is able to step in and enforce the order against errant creditors. 

The reason for the automatic stay is that bankruptcy is intended to provide financially burdened debtors immediate relief so that they can establish a plan to address their debt. How exactly that is done, of course, depends on the type of bankruptcy for which the debtor files. In any case, though, the automatic stay provides much needed relief.

The automatic stay, it is important to note, is not an ironclad protection throughout the life of the bankruptcy. Bankruptcy law allows debtors to file for relief from automatic stay in order in some circumstances. This often happens when the debtor is behind on his or her mortgage payment and the bank gave notice of a pending foreclosure filing. So the automatic stay is not absolute protection, but it can provide significant relief to a struggling debtor.

Those who feel they may be headed toward bankruptcy and could benefit from the protections it offers should get in contact with an experienced bankruptcy attorney to have their case evaluated and determine the best course of action for their situation.

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

 
 

Milwaukee Office
633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Law Office Map

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Law Office Map