Bankruptcy And The Automatic Stay

An Automatic Stay is a legal device in bankruptcies that prevents a creditor from continuing to attempt collections after the Chapter 7 or Chapter 13 bankruptcy has been filed.  This break from collections agencies and creditors can provide an individual with the opportunity to take steps toward getting their financial lives back on track.  It should be noted however, that creditors can request for a removal of the automatic stay.  If the creditor can provide appropriate justification for their request, the bankruptcy court will sometimes grant this request.  To better understand how an Automatic Stay will affect you during your bankruptcy, it is recommended to contact a local bankruptcy attorney.