What is an Automatic Stay?
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Under normal circumstances a creditor can try to collect a debt from you in a number of ways, including calling, sending mail, or suing you in court to get a judgment or wage garnishment. You can request a creditor stop calling you, but they still have the legal right to send you collection letters through the mail and take you to court.
Once you file bankruptcy however, the automatic stay goes into effect. The automatic stay tells creditors they cannot attempt to collect the debt in any way, shape or form. They cannot call you. They cannot send you collection notices. They cannot file in court. They cannot collect wage garnishments any longer. Any court proceedings that are currently under way such as foreclosure, are also stopped. The automatic stay stops all collection action, and if a creditor does attempt to contact you, you may be able to take legal action against them.
The automatic stay gives the court time to process your bankruptcy and you time to plan to rebuild your credit.
