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.
NYC’s Worst Debt Collectors: Who are They?
Over 20 million people live in one of our country’s biggest regions, metropolitan New York. Unfortunately, New York City has been hard hit by the coronavirus which is a threat to public health as well as the economy. The economic impact of COVID-19 shutdowns could put millions in dire straits financially, and sadly, many of these…Read more
Are You Judgment Proof?
We all know why people are considering filing for bankruptcy. We have seen an unprecedented “black swan” type event in the coronavirus. Unemployment numbers are way up and many Americans face an uncertain financial future. Under these circumstances, bankruptcy is a natural consideration. Those thinking of filing bankruptcy, or even families facing mounting credit card…Read more
How Much Does It Cost to File Bankruptcy?
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 might be. Filing Fees and…Read more
What Is the Automatic Stay?
Those suffering from excessive debt are often being pursued by a host of different creditors. The constant collection calls and letters can be overwhelming. The Bankruptcy Code’s automatic stay stops all creditors and collection activity in its tracks. The automatic stay is one of THE biggest benefits of filing bankruptcy, if not the main reason…Read more
180 Day Wait Period to Refile Bankruptcy After Dismissal
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 issuance of a discharge, you…Read more
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. Borrowers with little hope of seeing their property values bounce back are still deciding to walk away from their mortgages. Unfortunately, lenders often have the right to pursue these…Read more