West Palm Beach Bankruptcy Attorney

Automatic Stay and You

When you file for bankruptcy you have a type of legal protection called the automatic stay. This is meant to protect you against your bill collectors. This stops all lawsuits and most actions against your property by creditors, collection agency, or government entity. This is especially useful if there is risk of you being evicted, being foreclosed on, or losing basic resources like utilities, welfare, or unemployment benefits.

The automatic stay is meant to protect you, and can work in some of the following situations as well as others:

• Disconnected utilities: The automatic stay can keep your water, gas, or telephone service from being disconnected for at least 20 days.
• Foreclosure: The automatic stay can temporarily stop proceedings on foreclosure. Eventually, however, the creditor will be able to proceed again. If there is a risk of foreclosure, you should try to solve it while you are filing for bankruptcy and have the aid of the automatic stay.
• Eviction: It is now easier for landlords to proceed with evictions than it was before 2005. However, the automatic stay can still offer you some protection in some cases.
• Overpayment collection: If you were overpaid in public benefits that you receive, the agency is normally able to collect the amount out of your future checks. The automatic stay prevents this.

Speak with a West Palm Beach Bankruptcy Attorney

If you have questions about the automatic stay and are thinking about filing for bankruptcy, please contact the West Palm Beach bankruptcy attorneys of Eric N. Klein & Associates at 561.353.2500.