Bankruptcy Lawyers & The Automatic Stay

Bankruptcy lawyers can help you fall within the protections of the automatic stay in bankruptcy.  The automatic stay prevents creditors from pursuing collection efforts against you once you have filed for bankruptcy.  For instance, once you file for bankruptcy creditors cannot foreclosure on your home or repossess your car.  While the protections of the automatic stay is an operation of law and can be achieved without retaining a bankruptcy lawyer, enforcement of the automatic stay is another matter.  A bankruptcy lawyer can help you put creditors on notice of the automatic stay and show creditors that violations will not be taken lying down.

How A Bankruptcy Lawyer Can Help You Stop Creditors

A bankruptcy lawyer will file your bankruptcy petition with the appropriate bankruptcy court.  Once your petition has been filed the automatic stay comes into effect preventing creditors from making collection calls, proceeding with a foreclosure sale, or sending demand letters.  If a creditor violates the automatic stay by pursuing collection efforts your bankruptcy lawyer may take several steps.  The lowest cost option will be for your bankruptcy lawyer to notify the creditor of the automatic stay and their recent violation.  If the creditor continues to violate the automatic stay your bankruptcy lawyer may pursue a contempt action against the creditor.  Sophisticated creditors are more likely to obey the rule of law and cease collection efforts against you once your bankruptcy petition has been filed, but less sophisticated creditors who operate out of emotion may recklessly violate the court order that is the automatic stay.