Bankruptcy and Automatic Stays
Massachusetts Bankruptcy Attorneys Offer Creditor Relief
An automatic stay is the most valuable and essential benefit of filing bankruptcy. An automatic stay is a court order that grants relief to the bankruptcy filing from any attempts by creditors to collect a debt. This means there will be no more collection calls or eviction proceedings.
Automatic stays stop the following from happening:
● Home foreclosures
● The majority of evictions
● Vehicle Repossession
● Disconnections of utilities
● You may be able to get property from your estate.
● Receipt of Benefit Overpayments (e.g., welfare)
● Collection of debts that were incurred before the bankruptcy filing
● Continuation of litigation that started before filing
● Lien enforcement on
Both filers and creditors can benefit from automatic stays. An automatic stay is beneficial for creditors as it ensures all creditors have a fair chance of being paid back through court systems. An automatic stay gives filers an opportunity for a fresh start, a chance at enjoying life again without the constant reminders and calls from collectors. You’ll still have a place and a way to travel while you file bankruptcy.
What is the average time for an automatic stay to take effect?
The court clerk will notify your creditors about the automatic stay as soon as your bankruptcy petition is filed. Your automatic stay in Massachusetts will take effect within two weeks after filing your bankruptcy. Creditors are notified of the default. Your attorney can notify creditors if you have any pending litigation or if you want to inform certain creditors about the automatic stay.
Are there exceptions to automatic stays?
Yes. Creditors may file a motion to the court asking for an exception in their case. If they grant their motion, creditors could be able to sue you for the amount you owe. A landlord might also be able to evict your home in some instances. A Massachusetts automatic stay lawyer is your best friend to protect you from possible exceptions.
Coleman & Macdonald Law Office. is a team of bankruptcy attorneys that help clients attain financial security through bankruptcy law. We are qualified to assist you in achieving debt freedom because of our courtroom knowledge, trial advocacy experience, and understanding of the law. We can help you file bankruptcy and protect your automatic stay from creditors, including those who may try to collect your debt.