Understanding the Basics of Consumer, Financial and Personal Injury Law

About Me

Understanding the Basics of Consumer, Financial and Personal Injury Law

Up until nine months ago, I always considered myself above everyone else when it came to having good credit. I paid my bills on time and never went a day late on rent. I became the epitome of what a good consumer should be. But after losing my job after 12 years of faithfulness and hard work, my ego took a hit and so did my credit and finances. Humbled, broke and unable to pay my bills, I decided to file bankruptcy. I couldn't get a job right away and the only way to stay afloat was to start over. My bankruptcy attorney helped me do that. I started this blog to teach you how to come back from a financial and personal disaster with your life intact. I hope that you find the legal counsel you need to rebuild your life as well.

How Long Does the Automatic Stay Last and What Is It For?

When you file for either Chapter 7 bankruptcy or Chapter 13, the court will order your creditors to stop making contact with you, and this is called the automatic stay. This order is something that will provide relief for you during your case, and here are several important details about this order.

The Purpose of the Automatic Stay

The automatic stay in bankruptcy has one key purpose, which is to provide relief from creditor harassment. This purpose benefits anyone who files, and that is one of the reasons many people experience a sense of relief just after filing. Additionally, the courts put this in place simply to have time to sort through a person's case without having to deal with changes to the person's finances.

The Length of Time It Lasts

Within just a few days of submitting your bankruptcy documents, the bankruptcy court will receive them and issue the automatic stay. The amount of time this order stays in place depends on several factors. The first factor is the branch of bankruptcy used, and another factor is the length of the case.

The automatic stay in Chapter 7 cases is much shorter than that in Chapter 13 cases, and this is because a Chapter 7 case occurs much faster than a Chapter 13 case. A Chapter 13 case will take up to five years to complete, while a Chapter 7 case takes less than one year.

If the court, at any time, dismisses a person's case, the automatic stay will end right away. In other words, there will be no more relief for you if the court determines that you do not have the right to file for bankruptcy at this time and dismisses your case as a result.

The Effects When It Ends

When the automatic stay ends, your creditors will be free to once again start pursuing you for collections if you still owe them money. If the court discharged debts you had, your creditors cannot pursue you for money, as a discharge cancels your obligation to pay the debt. If there were debts that were not discharged or paid throughout the time your case was open, those creditors have the right to begin contacting you once again for the money you owe as soon as the automatic stay is released.

If you are ready to learn more about how bankruptcy can help you and your financial difficulties, contact a chapter 7 bankruptcy lawyer near you.


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