If collectors are hounding you and you will be declaring bankruptcy, the automatic stay will stop the harassment.<\/p>\n
Those facing bankruptcy have many concerns about the recent changes to the U.S. bankruptcy laws. They feel they are way too friendly for creditors, leaving debtors facing a struggle to handle their unmanageable debts. However, there are provisions to protect debtors and one of those is the automatic stay, found in section 362(a) of the Bankruptcy Code (Code).<\/p>\n
This particular section, paraphrased, says that if you file for bankruptcy, the petition automatically halts any collection action by creditors. In laymen\u2019s terms, the stay or stop is similar to an automatic court order that instructs the debt collector to halt all collection activities against the petitioner. As a further point of interest, the auto stay also halts many civil lawsuits against the filer.<\/p>\n
The code includes an automatic halt of any collection proceedings, simply because it is (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" If collectors are hounding you and you will be declaring bankruptcy, the automatic stay will stop the harassment. Those facing bankruptcy have many concerns about the recent changes to the U.S. bankruptcy laws. They feel they are way too friendly…<\/span><\/p>\n