What Is An “Automatic Stay” In Bankruptcy?

The moment you file for bankruptcy, there is an automatic court order which says everyone has to stop harassing you or collect anything from you immediately, even if they do not know that you have filed bankruptcy. That would include any attempt to garnish your wages or repossess a car or foreclose on a home. They cannot even call you or send you demand letters anymore. Of course, it takes anywhere from a few days to a few weeks (and sometimes longer) before they actually stop. In the meantime, just tell them you have filed bankruptcy and that they should call your attorney. If they continue to deliberately violate the court order, then the federal court can severely penalize them for not leaving you alone.

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