Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709

Debt collection and the automatic stay, P.2

In our last post, we looked briefly at some of the changes made by a recent bill signed into law by Governor Scott Walker. Those changes, as we noted, make it easier for creditors, including debt buyers, to validate debts in court and remove deterrents to pursuing ill-founded collection actions.

As we noted last time, one of the benefits of filing for bankruptcy is that a debtor is able to receive debt collection relief through an automatic stay. An automatic stay is an injunction issued by a bankruptcy court which puts a halt on all litigation, foreclosure proceedings, garnishment efforts, and debt collection activities against the debtor. An automatic stay goes into effect the moment a debtor files for bankruptcy.

The automatic stay is not, of course, enough on its own to justify a bankruptcy filing, but for debtors who are looking at the possibility of bankruptcy as the next logical step, the halting of collection proceedings is an important aspect of bankruptcy.

That being said, there are certain liabilities the automatic stay does not protect a debtor from, and some creditors are able to lift an automatic stay by filing a motion for relief. This often happens with mortgage lenders who aim to put a properly through foreclosure. Because of this, bankruptcy doesn't provide full relief from all creditor actions. Debtors in bankruptcy do enjoy the protection of the court when creditors fail to abide by the automatic stay, though, so it is an important aspect of the bankruptcy process, particularly for debtors who have suffered months or years of aggressive collection efforts. 

No Comments

Leave a comment
Comment Information
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

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

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Appleton Office

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

Phone: 262-261-0665
Brookfield Office

Glendale Office
6333 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.