Automatic Stay

A Levels Academy Islamabad

Transcript

00:00Sometimes, we just need a break to call time out on everything and collect yourself.

00:06This is especially true when it comes to legal financial matters such as debt collection.

00:11If you're in a position where you're filing for Chapter 7 or Chapter 13 bankruptcy, things

00:15are probably rough enough as it is.

00:18That's where an automatic stay comes into play.

00:21An automatic stay is an injunction that stops any creditors from continuing to try to collect

00:26from you once bankruptcy is declared.

00:28Literally, the moment Chapter 7 or 13 bankruptcy begins.

00:32That's according to Section 362 of the United States Bankruptcy Code.

00:37In fact, the automatic stay essentially goes hand-in-hand with the filed bankruptcy petition.

00:43Automatic stays prevent a wide variety of collection tactics, such as wage garnishment,

00:47home foreclosure, vehicle repossession, and harassing calls.

00:51Although child support payments, along with a few other exceptional actions, are immune

00:56from the automatic stay.

00:57All in all, automatic stays should be looked at as an opportunity.

01:01One where you can organize and figure out repayment while your property remains protected.

01:06Time, as it so often does, remains of the essence in matters like these.

01:11The sooner you get things rolling, the sooner advantages like an automatic stay can help.

01:17Especially because actions such as home foreclosure cannot be undone by an automatic stay.

01:22They can only be prevented by an automatic stay.

01:26Now, secured creditors can push for relief from the automatic stay, allowing them to

01:31go through with getting what they're owed.

01:33For understanding how automatic stay and other beneficial legal routes can work for you,

01:38turn to LegalYou.

01:39For anything.

01:41LegalYou.

01:42You can do this.