What Is an Automatic Stay?
When a person files for bankruptcy, they are immediately given what is known as an automatic stay by the court. This legal action stops any creditor from continuing to collect from that debtor. However, these legal actions aren’t necessarily permanent. Creditors may request from the court their right to collect or repossess despite an automatic stay.
If you’re facing debt that has grown out of control, you may benefit from filing for bankruptcy protection. Bankruptcy can help you get your finances under control so that you can get back to living your life. To learn more about your options, contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC, today by calling (205) 324-4000.
When Automatic Stay Doesn’t Work
There are a few instances when a debtor’s protections in bankruptcy may not hold up. In particular, a creditor may be able to foreclose or repossess a piece of property in the following situations:
If the property has already been sold
If the notice of foreclosure or repossession has already been posted
If the creditor can convince the court to lift the stay
In these circumstances, a person may lose their property despite being otherwise protected under bankruptcy. However, an attorney may be able to help someone find ways to challenge these exceptions to automatic stays in some cases.
If your future looks bleak because of overwhelming debt, we may be able to work with you to find a powerful debt solution. For more information regarding your options when considering bankruptcy, contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC, at (205) 324-4000 today.