Posts Tagged ‘automatic stay’

March 7th, 2011

What is the Automatic Stay and how does it impact both debtors and creditors in bankruptcy?

Once a person files bankruptcy, an “automatic stay” becomes effective, literally stopping all creditors in their tracks. This includes stopping foreclosures, garnishments and repossessions. However, this may only be temporary. A creditor represented by an Arizona bankruptcy lawyer can file a motion to get permission from the debtor’s bankruptcy judge to proceed with enforcing its rights.