The automatic stay in bankruptcy is a court-ordered injunction that goes into effect the minute a case is filed. The automatic stay prohibits creditors from continuing with collection efforts after a debtor seeks the protection of the bankruptcy court. For example, collection calls, garnishments, lawsuits, foreclosure, letters, e-mails and all other contact with the debtor must come to an end. Creditors who ignore the automatic stay and continue to contact the debtor after they have filed for bankruptcy can be subject to sanctions by the court. In some cases, such as when a debtor enters bankruptcy behind on their mortgage, creditors can ask the court to lift the automatic stay in order to proceed with foreclosure.
Posted On: May 9, 2017
Posted by: Charles L. Basch II
NYC’s Worst Debt Collectors: Who are They?
Over 20 million people live in one of our country’s biggest regions, metropolitan New York. With that many people, it’s likely that millions are in financial dire straits. And where there is financial misery, there are debt collectors. Who are the Big Apple’s most prolific debt collectors? Are they the major players in the debt collection…Read more
Posted On: June 3, 2014
Are You Judgment Proof?
Last updated June 28, 2017. We all know why people are filing for bankruptcy. With a tepid recovery, jobs are hard to find, home values are still low, and fear and uncertainty are preventing business owners from expanding their businesses. The costs of health care are rising even with the Affordable Care Act in play….Read more
Posted On: January 27, 2014
How Much Does It Cost to File Bankruptcy?
Last updated March 31, 2017. Everyone preparing to file for bankruptcy wants to know the cost. After all, bankruptcy usually comes at a time when money is tight. Below, we’ll talk about filing fees, attorney fees, the cost of filing on your own versus filing with an attorney, and what your expected total bankruptcy cost…Read more
Posted On: October 28, 2013
The Automatic Stay Explained
Creditors are notified of the stay The automatic stay is created immediately upon the filing of your bankruptcy case whether it be a Chapter 7 or a Chapter 13 case. The automatic stay is a one-page document that gets sent to creditors notifying them of your bankruptcy and prohibiting them from taking certain actions. If…Read more
Posted On: October 19, 2013
Posted by: John O'Connor
180 Day Wait Period to Refile Bankruptcy After Dismissal
Last updated May 31, 2017. Dismissal of a bankruptcy case is unfortunate and can happen for a number of reasons. The Bankruptcy Code places numerous responsibilities on debtors and failure to comply can jeopardize your case; making it important to consult with a knowledgeable bankruptcy attorney before filing. When a bankruptcy case is dismissed without…Read more
Posted On: October 18, 2013
Posted by: John O'Connor
Protecting Against Deficiency Judgments Through Bankruptcy
Does Bankruptcy Eliminate Liability for Deficiency Judgments? It’s a common story in many areas of the country: real estate values have dropped and foreclosures have risen. Despite a recovery in some parts of the country, borrowers with little hope of seeing their property values bounce back are still deciding to walk away from their mortgages….Read more