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Thursday, October 24, 2013

The Automatic Stay, Section 362 of the Bankruptcy Code

Bankruptcy in General for Both Chapter 7 and 13

A federal legal proceeding in which all creditor collection activities must come to a complete stop.  Probably the most important aspect of either chapter is the Automatic Stay of all proceedings against the Debtor under 11 U.S.C. § 362 of the Bankruptcy Code.  Think of the automatic stay as a giant shield that protects you from all of your creditors and stops all collection activities such as foreclosure, garnishment, repossession, tax levy, utility shutoff’s, and lawsuits that are pending, or complete.  It stops the creditors from calling your home or business or your friends and family.  It goes so far as to stop them from sending you those monthly bills in the mail!

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