More on the Automatic Stay
A San Jose Bankruptcy Attorney Continues with the Automatic Stay, Part 2
Last time I wrote, I briefly introduced the automatic stay from the perspective of a San Jose bankruptcy attorney, with regard to its protections, and how it generally works. Today, I will continue with this series and go into some more specific detail. As I noted before, the automatic stay basically serves as a shield for a debtor against creditors. Once a debtor files their bankruptcy petition, all collection activity must go through the bankruptcy court. Thus, creditors cannot take further action against a debtor directly.
Anyone trying to collect credit card debts, medical debts, attorney fees, debts arising from breach of contract, or legal judgments against you must cease all collection activity. Still, almost all proceedings related to a divorce or paternity action continue. With few exceptions, the automatic stay does NOT stop eviction of a tenant IF, the landlord obtained a judgment of possession PRIOR to the bankruptcy filing, or the tenant’s actions are endangering the property i.e. engaging in criminal activity on the premises. The automatic stay also prevents the IRS from issuing a lien or seizing any of your property or income. Still, the IRS may continue a tax audit, issuing a tax deficiency notice, demanding a tax return, or issuing a tax assessment. Last, companies providing you with utilities may not discontinue service because you file bankruptcy. They can, however, shut off your service 20 days after you file if you don’t provide them with a deposit or assurance of future payment.
As always, an experienced bankruptcy attorney can help you understand your rights once you file your petition!
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
