Automatic Stay Order

Prior to consulting an attorney for an initial consultation many debtors have been harassed by their creditors be it phone calls or endless streams of demand letters in the mail. Most people simply just want the craziness to stop. Other people come to see us out of threat of foreclosure or repossession of their vehicles.

When a bankruptcy case is filed, an order called the “automatic stay” is issued in every case. The “automatic stay” order is a federal order that haults any and all collection activities. Collection activities can be phone calls, repossessions, foreclosures, threatening letters or threats of civil suits.

Once the “automatic stay” order is issued, it is illegal for anyone to attempt to collect a debt against the filer. In practice, this means that you can receive no more harassing phone calls and you can not cannot be sued on debts listed in the petition in civil court. If your home is going through foreclosure that process must be halted. If your car is in the process of being repossessed, the repossession process must be halted as well. If your bank account pay check is at risk of being garnished seized, any monies garnished seized after the filing and issuance of the “automatic stay” order must be returned to the filer as soon as practicable.

“Automatic stay” orders are very powerful orders in collection law. Anyone having experience in collection activities after the filing of their case should contact their attorney immediately. The penalties and fines for violating this order are substantial. Violations of this order are exceedingly rare because of the fines and penalties associated with it. As such, debtors can be assured that once they file their case the endless litany of harassment and collections will be over.


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Morse Law, LLC

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