An Automatic Stay gives the debtor a breathing spell from creditors. It becomes effective immediately when Chapter 7 or Chapter 13 bankruptcy is filed.
It prohibits: lawsuits, collection calls, repossessions, foreclosure sales, and wage garnishment.
In Chapter 7, the automatic stay remains in effect until the debtor gets a discharge (a few months).
In Chapter 13, the automatic [...]
Boston Bankruptcy Attorney Answers Chapter 7 & 13 Bankruptcy Questions
Monthly Archives: December 2009
What is an Automatic Stay in Bankruptcy?
What is Chapter 13 in Bankruptcy?
Chapter 13 Bankruptcy is a debt payment plan that can allow you to keep your home, car, and other property while paying a portion of your unsecured debts (for example credit cards). The rest of the unsecured debts are discharged (eliminated).
A Chapter 13 filing allows you to avoid foreclosure if you keep current on your payments [...]
What is Chapter 7 Bankruptcy?
In order to escape from the harassment of creditors and make a fresh financial start, you may want to consider filing chapter 7 bankruptcy.
Chapter 7 will eliminate most debts and allow you to keep your home if you are current with your mortgage payments. On the other hand, Chapter 7 will allow you to end [...]
Divorce Settlement and Bankruptcy
If your ex-spouse files for bankruptcy after the divorce, can you lose the divorce settlement money owed to you?
No. Marital settlement debts cannot be discharged in a Chapter 7 bankruptcy, so that money will still be owed to you. However, non-support marital debts can be discharged in a Chapter 13. If the divorce agreement or [...]
