What is an Automatic Stay?

Transcription:
Hi, my name is Robert Geller and my law firm is the law office of Robert M Geller, PA. We are a consumer bankruptcy firm, and today I want to talk to you about the automatic stay. What is the automatic stay? So when we file a bankruptcy for a client automatically, we get a stay. What does that mean?

It means that the creditors have to stop everything that they’re doing. They have to stop their garnishment, stop their foreclosure, and stop their lawsuits. They can’t bother you anymore. The creditors have to stop calling you. As soon as I push that button electronically and follow your case, they have to stay. That’s called an automatic stay. That’s in section 362 of the bankruptcy code. What can creditors do about the automatic state? Well, they can ask the bankruptcy court for permission under certain circumstances.

Relief

What for relief from this day. Before they get that relief, they gotta file a motion and go to court. And only under certain circumstances, can they get that relief from the automatic stay? Generally, the automatic stay applies throughout the entire case. And what that really means is let’s say you’re getting a garnishment. Once the bankruptcy is filed, the creditor actually has a duty to tell the court, the state court that’s garnishing your wages that a bankruptcy has been filed, and they have to get that garnishment taken off of your wages so that you can continue to get your wages.

When the bankruptcy goes through, they can no longer garnish your wages ever again, because you’ll at that point, get a bankruptcy, discharge, prohibiting the predator from ever collecting from you or ever trying to get any money. So an automatic stay is just that as soon as the case is filed and automatically goes into play. I am Robert Geller and I want to help you build a brighter future. So give us a call. Thank you.