Mark T. Young & Associates
Free Initial Consultation:
423-933-1606
888-376-0282(Toll Free)
423-933-1606
888-376-0282
Focused On Your
Financial Freedom

An automatic stay may not solve all your debt problems

The decision to file for bankruptcy is a big one. It may have taken you a lot of back-and-forth and stressful consideration before you decided that this option would likely best suit your debt relief needs. Your situation may have gotten to a point where creditors were garnishing your wages or you faced foreclosure on your home, and you knew you needed to take action.

When it comes to the benefits of bankruptcy, you may be particularly interested in the automatic stay. This action is a court order for creditors to stop collection actions against you, which could include garnishment, foreclosure, repossession and other actions. However, do not think that the automatic stay will solve your problems forever. This benefit does come with stipulations.

Not a catch-all solution

Though an automatic stay could greatly help your situation, it may interest you to know that it does not apply to every aspect of bankruptcy. In fact, if good reason exists, the court could lift the stay, and creditors could regain the ability to take action against you. Additionally, the stay may not apply to all creditor actions, and it only lasts a certain period of time. In some cases, it may not even go into effect.

Effects on multiple filings

For some individuals, their financial situations may be so dire that they choose to file for bankruptcy more than once within a 12-month time span. However, multiple filings -- also known as serial filings -- affect the automatic stay. For instance, if you file a second bankruptcy petition after your first, the length of the automatic stay will be reduced to only 30 days unless you petition the court for an extension.

If you file three bankruptcy cases within 12 months, the court will not apply an automatic stay to the third filing. If you believe that you deserve to have the automatic stay, you could again attempt to show that need to the court.

More understanding of the automatic stay

The effectiveness of the automatic stay may depend on the specific circumstances of your case. If you would like to gain more information on this benefit and how it may apply to your case, you may want to consult with an experienced Tennessee attorney. This legal professional can provide you with reliable information, advice on useful steps to take and guidance throughout your bankruptcy proceedings.

No Comments

Leave a comment
Comment Information

Get Started Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Contact Information

Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
Phone: 423-933-1606
Fax: 423-877-0363
Hixson Law Office Map