Before someone files for Chapter 13 Bankruptcy their creditors may be contacting them nonstop regarding their debt whether it is via email, letters through the mail, or even phone calls. An automatic stay is an order given from the U.S. Bankruptcy Court that is issued to your creditors that you have begun the bankruptcy process. An automatic stay in Chapter 13 Bankruptcy tells them moving forward that they are to deal with your trustee rathern than you personally in your case.
By working with an experienced Baltimore Bankruptcy Attorney, together you and your attorney will begin the Chapter 13 Bankruptcy process by naming your creditors and the list of debts that you owe. A creditor that is named in your automatic stay by law cannot attempt to collect on their debts except through the court system.
In addition your creditors must also stop all other actions such as court proceedings and administrative actions again you once the court has notified them about your bankruptcy. There are of course a few exceptions to the automatic stay.
Are there any exceptions to an automatic stay in Chapter 13 Bankruptcy?
Yes, there are two exceptions to an automatic stay in Chapter 13 Bankruptcy. If a person has filed for bankruptcy and the court has dismissed your case within the past year, the automatic stay can only go into effect for 30 days after you file. The other exception is when you have filed for bankruptcy and had two (or more) cases dismissed within the past year. The U.S. Bankruptcy court will not issue an automatic stay.
If either of these exceptions applies to your case, you can still ask the court system to issue an automatic stay that will stop foreclosure on your home. In order to do this though, your lawyer must prove to the court that you did not act in bad faith by filing for multiple bankruptcy cases.
How to obtain an automatic stay in Chapter 13 Bankruptcy
In order to obtain an automatic stay you should work with your bankruptcy lawyer to create a list of all your creditors. Like the name suggests, the stay is automatic meaning that as soon as you file for bankruptcy the court will issue the automatic stay on your behalf.
From there your creditors must work through the court system to recover what you owe. Simultaneously you and your bankruptcy lawyer will work on a repayment plan that will last from 3 to 5 years that will repay your debts. Together you will submit your plan to the court, and a trustee assigned to your case will review your plan.
About the Law Offices of Nicholas J Del Pizzo
The burden of overwhelming debt can be too much for anyone to handle. That is where the Law Offices of Nicholas J Del Pizzo can help. At our Baltimore Law Office, our knowledge and experience in bankruptcy law can help you get the fresh start you need by wiping out your debts, reorganizing your finances, and saving your home.