Bankruptcy law can be incredibly difficult to understand for the layperson. If you’re filing for bankruptcy, then you are most likely juggling a lot of concerns and obligations. The specialized vocabulary of bankruptcy law can only add pressure to the situation.
Read on for more information about understanding bankruptcy law and contact an experienced attorney for expert knowledge and advice.
Why file for an Automatic Stay?
You’re probably unfamiliar with the concept of “Automatic Stay,” which can be explained to you in detail by your bankruptcy attorney. Automatic Stay represents relief to those filing for bankruptcy, whether Chapter 7 or Chapter 13.
What does it mean?
According to the United States Courts’ glossary, an Automatic Stay is “an injunction that automatically stops lawsuits, foreclosures, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed.” This means that creditors (with a few exceptions) cannot act to collect debts from the debtor for a certain period of time. The Stay’s purpose is to give debtors some time to figure out their situations and to establish a repayment plan, without the added pressure for resolution from the creditor.
Who can benefit from an Automatic Stay?
Automatic Stay is incredibly helpful to U.S. businesses, as it does not stigmatize business failure. The United Kingdom, for example, does not offer this period for businesses or individuals to sort out their financial situation or negotiate with creditors.
For help filing for Chapter 7 or Chapter 13 bankruptcy, call the dedicated Milwaukee bankruptcy experts at Burr Law Office. Filing for bankruptcy can be a complicated and challenging process, and an experienced attorney who can help you efficiently navigate the process is invaluable. Call Burr Law Office at (262) 827-0375 for more information.