Automatic Stay
A Levels Academy Islamabad
Transcript
00:00Sometimes, we just need a break to call time out on everything and collect yourself.
00:06This is especially true when it comes to legal financial matters such as debt collection.
00:11If you're in a position where you're filing for Chapter 7 or Chapter 13 bankruptcy, things
00:15are probably rough enough as it is.
00:18That's where an automatic stay comes into play.
00:21An automatic stay is an injunction that stops any creditors from continuing to try to collect
00:26from you once bankruptcy is declared.
00:28Literally, the moment Chapter 7 or 13 bankruptcy begins.
00:32That's according to Section 362 of the United States Bankruptcy Code.
00:37In fact, the automatic stay essentially goes hand-in-hand with the filed bankruptcy petition.
00:43Automatic stays prevent a wide variety of collection tactics, such as wage garnishment,
00:47home foreclosure, vehicle repossession, and harassing calls.
00:51Although child support payments, along with a few other exceptional actions, are immune
00:56from the automatic stay.
00:57All in all, automatic stays should be looked at as an opportunity.
01:01One where you can organize and figure out repayment while your property remains protected.
01:06Time, as it so often does, remains of the essence in matters like these.
01:11The sooner you get things rolling, the sooner advantages like an automatic stay can help.
01:17Especially because actions such as home foreclosure cannot be undone by an automatic stay.
01:22They can only be prevented by an automatic stay.
01:26Now, secured creditors can push for relief from the automatic stay, allowing them to
01:31go through with getting what they're owed.
01:33For understanding how automatic stay and other beneficial legal routes can work for you,
01:38turn to LegalYou.
01:39For anything.
01:41LegalYou.
01:42You can do this.