We’ve talked about the power of the automatic stay in bankruptcy, and how it halts actions against you and your property once you file for bankruptcy. Now it’s important to review the actions covered by the automatic stay.
So long as the automatic stay remains in place, the following actions are prohibited:
- Beginning or continuing law suits
- Collection calls
- Repossessions
- Foreclosure sales
- Income executions (“garnishees”)
- Bank account restraints
As you can tell, the automatic stay gives you a tremendous amount of power when you file for bankruptcy. It stops many types of creditor actions and gives you the ability to feel the effects of a fresh start immediately.
Photo courtesy of Bisayan Lady.
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