Bankruptcy’s Automatic Stay
Automatic Stay Attorneys in Milwaukee, Wisconsin
Filing for bankruptcy is complicated, and the tools needed to protect debtors can be even more complex. Before filing, it is unquestionably critical to understand the entirety of this legal remedy. When you file for Chapter 13 or Chapter 7, the automatic stay goes into effect immediately. But what is an automatic stay in bankruptcy? In this article, Miller & Miller Law, LLC will help you understand why it is important and how an experienced bankruptcy attorney will help you resolve your unsecured debts.
In Wisconsin, Miller & Miller Law, LLC is one of the most reliable bankruptcy firms you can employ. Our strong commitment is to thoroughly understand every situation of our clients because we know how frustrating it is to suffer from debt problems. We are dedicated to being of assistance to you by being compassionate, empathetic, and smart. We also offer a free legal consultation. Schedule a free consultation now if you need help with your financial problems!
How Can a Bankruptcy Filing Protect You?
There are many useful ways that bankruptcy filings can wipe your debts out or save you from extreme hardship. It would help if you kept in mind that bankruptcy is a great tool to protect consumers. Some bankruptcy laws stop harassment or prevent fraudulent practices if this is your first time. As the bankruptcy code dictates, the automatic stay becomes effective immediately after filing a bankruptcy petition.
The bankruptcy procedure can:
- Offer long-term and short-term debt solutions.
- Give a fresh slate to rebuild credit.
- Stop and prevent creditor harassment.
- Stop and prevent tax levies and wage garnishment.
- Stop foreclosure.
- Stop vehicle repossession.
- Wipe out all your debts such as utility bills, medical bills, credit card bills, payday loans, and among others.
- Decrease the amount of the debt you owe.
- Enables bankruptcy exemptions to save your property.
- Make your life better without debt.
Automatic Stay Safeguards Consumers
Miller & Miller Law, LLC will explain the bankruptcy process and how the automatic stay can safeguard consumers. Although new bankruptcy laws may be enacted to protect creditors, the automatic stay will remain in effect. Even though bankruptcy laws are subject to change and can limit the protection that the automatic stay provides, in many cases, your creditors are ordered to stop collection activities the moment you file bankruptcy.
After you file for bankruptcy, the automatic stay prevents any collection activity. Creditors are not permitted to call or send letters. Furthermore, an automatic stay will stop and prevent any legal actions brought against you, as well as almost any action taken against you, your paycheck, or your property.
Automatic Stay Can Stop and Prevent the Following:
The automatic stay will protect your home against any foreclosure activity. Chapter 13 bankruptcy might be the best option you have to protect your house from foreclosure. Typically, Chapter 13 is filed by debtors to save their homes before the forced sale.
Debtors are also protected under the bankruptcy code if their utility company threatens to disconnect their heat and lights. If the electricity company disables your gas and electricity, the automatic bankruptcy stay can force them to reconnect your power.
The repossession man is prohibited from taking your vehicle after filing for bankruptcy. If you wish to retain your financed car, you should continue making payments for it after filing for Chapter 7 bankruptcy. On the other hand, if you filed under Chapter 13, you must make payments to the bankruptcy trustee; otherwise, the creditor may obtain a valid court order to repossess your car.
Lawsuits and Garnishments
Filing for bankruptcy immediately prevents and stops wage garnishment and other lawsuits. The automatic stay protects your paycheck from creditors. You can legally take home your full salary while still being able to pay off all of your outstanding debts.
The automatic stay can also stop the IRS from repossessing your property or issuing a tax levy. However, they still have the legal right to evaluate your tax liability, compel you to pay, and demand your income tax returns, among others.
Public Assistance over payments
The agency is entitled to the overpayment if you get the state public assistance and the agency inadvertently overpaid you. An automatic stay prevents them from pursuing collection activities for the overpaid funds. Unless the agency claims otherwise due to fraud, the debt will be wiped out in bankruptcy.
Exceptions to Automatic Stay
The automatic stay can help prevent any possible collection activities or lawsuits initiated by the creditor against you. However, to every rule, there are exceptions. In Wisconsin, the following are the exceptions to the rule:
The automatic stay will not stop the criminal proceedings. For example, if you are charged with DUI, the prosecution will proceed, and filing for bankruptcy will not save you from being prosecuted. Suppose the charges against you are civil liabilities. In that case, the creditor may be barred from pursuing collection actions for the remaining debts.
The automatic stay cannot stop any lawsuit filed against you to seek the establishment of paternity or to collect or modify child support.
Call our Automatic Stay Attorneys in Milwaukee, Wisconsin, Now!
The bankruptcy process and the nature of the automatic stay can be very confusing. And that is normal. Getting confused with the process is not equivalent to having a weak case. Filing for bankruptcy might be the best solution to having your debts eliminated, so don’t be afraid of filing. The procedure might indeed be very complex as it seems, but getting a skilled bankruptcy lawyer can remove your doubts.
In Milwaukee, Wisconsin, Miller & Miller Law, LLC can bring about a desirable change in your finances. Our many years of experience assisting people who are struggling financially enables us to guarantee excellent legal service. While predicting a case is not possible, as far as the assurance is concerned of getting great legal service, Miller & Miller Law, LLC can. We will carefully examine your case and provide legal remedies based on your circumstance.
Besides helping you with the automatic stay, we also handle personal injury, bankruptcy alternatives, credit repair, debt negotiation, and many more! Schedule a free initial consultation if you need help with our services.