Bankruptcy Filing

Generally when a debtor files for bankruptcy there is an automatic stay. There are a few circumstances where the stay might be for a limited time period or not automatic at all. This is usually when a debtor has recently had a pending bankruptcy case. It is important that you inform your attorney of all prior bankruptcies so that he/she can determine whether any additional motions need to be filed.

The protection of the automatic stay, explained in Section 362 of the Bankruptcy Code, provides protections for individuals filing for bankruptcy from garnishments, bank account freezes, repossessions, and foreclosures. If you are aware of an immediate threat of any of these issues you should inform your attorney. He/she may take additional steps, including sending a fax to the attorney handling the collections, to notify that individual as quickly as possible that you have filed a bankruptcy.

If you are facing a foreclosure you should speak with an attorney as soon as possible. Filing for bankruptcy can stop a foreclosure, but only if the bankruptcy is filed before the house is foreclosed. If the threat of foreclosure is immediate your attorney can file an emergency petition.

Basically, this provides enough information to stop the foreclosure. Over the next 14 days you and your attorney will need to provide the court with the rest of the required information to complete your bankruptcy filing. If you are facing a repossession you need to consult an attorney and file your bankruptcy as soon as possible. The emergency option, as discussed above, is available in this situation also. However, in the case of vehicles, it may be possible to have a vehicle returned after it has been repossessed. There is a very limited time to have your car returned and to have the vehicle returned you will have to pay fees incurred, potentially including towing and storage fees.

If you are facing a garnishment you can file for bankruptcy to stop the garnishment. As a practical matter sometimes checks are garnished after the filing date because garnishments are often automatic and it may take a few weeks to stop them. If this happens you are entitled to a refund of any money garnished after your case is filed. Unfortunately, nothing can be done to recover funds from before your case is filed.

If you have questions, or would like to schedule a consultation, contact a A&L Licker Law Firm Today.

Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. For guidance regarding your specific situation, please contact A & L, Licker Law Firm, LLC directly.