What Bankruptcy Circumstances Can Affect Your Automatic Stay?
Whenever you face financial difficulty, especially with big debts, you may think you’re running out of options. Although you have started making payments, cut expenditure or have tried other means, it might not be significant enough for your outstanding obligations. You might face action from your creditors like salary garnishment.
Regarding this circumstance, you may think of filing bankruptcy and hire a bankruptcy attorney in Edmond, OK. This is already a significant step with several benefits. Talking about it, you might know about the automatic stay that can stop creditors.
Automatic Stay – How it Works
An automatic stay provides an advantage during a bankruptcy filing that stops creditors action against you. Generally, this action can put a hold on repossession, wage garnishment, foreclosure, and other activities. In significant cases, this automatic action comes into immediate effect after filing bankruptcy.
When this helps you should bear in mind that it cannot stop creditors for an indefinite time. It might not stop specific actions of creditors and lasts only for a particular time. However, the court may delay this stay, or it might not be applicable in your case, as such the court may lift it.
More Than One Bankruptcy Case
If you have an awful financial condition, you might consider multiple bankruptcy case within 12-months. Though, this serial filing can affect your automatic stay. As an example, filing two times during a 12 month period, your automatic stay only lasts for a month (30 days), but you can request the court for an extension. If you apply file bankruptcy a third time in a year; the third petition will not have any automatic stay unless the court approves it. You can consult a bankruptcy attorney in Edmond, OK to get a better insight.
For more information how automatic stays work and how this might help you, consult with an Oklahoma attorney. A bankruptcy lawyer can help you better understand your case as well as what actions should be taken to reclaim your finances.
For more information on automatic stay and better application, do have a consultation with a bankruptcy attorney in Edmond, OK at Chris Mudd and Associates.
** Disclaimer: This blog post does not constitute legal advice, nor does it create a client-attorney relationship.