Automatic Stay in a St. Louis Bankruptcy
The moment a St. Louis bankruptcy is filed, the ‘automatic stay’ is imposed. This stay is what prevents your creditors from contacting you or continuing to collect on any debts. It also halts all other legal activity that you had been associated with that may have been pending (such as a workman’s compensation action, personal injury suit, or divorce proceedings). The automatic stay is therefore the shield of protection that the federal court surrounds you with when you file for bankruptcy, and it is what your St. Louis bankruptcy attorney wields as a sword against your creditors.
In addition, there are several important components of the automatic stay that serve as a protective measure while you are in bankruptcy. If a creditor does attempt to contact you concerning your debts (or if the creditor attempts to collect on the debt) after the bankruptcy petition has been filed, this is a violation of your consumer rights. There are fairly stiff penalties for this, and the court has broad discretion as to what kinds of damages it may impose. Or if a creditor filed suit against you (ex. breach of contract) before the bankruptcy filing, the case would have to be withdrawn, and no further action could take place on the matter.
This protection exists to give you relief when you file for bankruptcy, and is imposed whether you file a St. Louis Chapter 7 bankruptcy or a St. Louis Chapter 13 bankruptcy. The affordable St. Louis bankruptcy lawyers at The Bankruptcy Company have been making sure that our client’s federal rights are preserved for years. Our staff is prepared to guide you through this process, and ensure that you receive the fresh start / clean slate that you deserve.