One of the immediate results of filing for bankruptcy in Bakersfield is relief from creditors. This benefit is called an automatic stay. As soon as your paperwork is filed in court, the automatic stay goes into effect, although there is typically some lag time between the filing itself and the mailing of notices to your creditors.
For this reason, faxing or delivering a copy of the court paperwork to your creditors is a good idea. Once all of your creditors have been notified of your filing for bankruptcy, they are prohibited from calling, writing or otherwise harassing you about your outstanding debt. If you receive communication from your creditors after the stay has gone into effect, contact your attorney.
Automatic Stays Will Buy You Time
The automatic stay can prevent a number of potentially catastrophic things from happening, and in some cases is reason enough to file for bankruptcy. In the event that your utilities are at risk of being cut off, the automatic stay should prevent disconnection for at least a few weeks. It can also temporarily halt any foreclosure proceedings. (Filing for bankruptcy under Chapter 13 is a good idea if you’re determined to retain possession of your home.) The automatic stay may also buy you some time if you’ve been threatened with eviction, and it will prevent any garnishment of your wages.
What to know about Automatic Stays & Bankruptcy Filings in Bakersfield
There are some things the automatic stay cannot do. For example, any criminal proceedings against you may go forward, with any non-financial penalties remaining in effect. Additionally, if you have been sued for support payments such as alimony or child support, such suits are not affected by a bankruptcy.
All of the processes and laws surrounding a personal bankruptcy are complex, and many aspects of bankruptcy depend on individual cases. For questions about what the automatic stay can and cannot do, or for more information about any aspect of this process, schedule a free consultation with D. Max Gardner, a skilled Bakersfield bankruptcy attorney at 661-888-4335
