Bankruptcy Attorney in Raleigh, North Carolina
Bankruptcy Automatic Stay in Raleigh, NC – What You Need to Know
Are you struggling with debt and looking for relief? Filing for bankruptcy may be the solution you need. Bankruptcy is a legal process that can help you reorganize your finances, settle debts, and get a fresh start. One of the most important protections bankruptcy provides is the automatic stay, which immediately stops creditors from collecting once you file. At Cameron Bankruptcy Law, we have decades of experience helping people in Raleigh, NC, and beyond navigate the bankruptcy process.
What Is an Automatic Stay?
An automatic stay is a court-ordered protection that automatically goes into effect when you file for bankruptcy. It stops all collection actions from creditors, including phone calls, letters, repossession, and foreclosure proceedings. This gives you the breathing room you need to assess your financial situation and plan for the future.
How Long Does an Automatic Stay Last?
The duration of the automatic stay depends on the type of bankruptcy you file. In a Chapter 7 bankruptcy, the stay typically lasts for 3 to 5 months until your debts are discharged. In a Chapter 13 bankruptcy, the stay can last for 3 to 5 years while you follow a repayment plan. However, if you’ve had a bankruptcy case dismissed in the past year, the automatic stay may only last 30 days or not apply at all.
What Can an Automatic Stay Stop?
The automatic stay is one of the most powerful tools in bankruptcy. It can stop various actions from creditors, giving you time to resolve your debts without being harassed. Here’s what the automatic stay can do:
- Stop Foreclosure Proceedings: The automatic stay halts foreclosure proceedings while your bankruptcy case is active. In Chapter 13, you may even be able to catch up on past payments and keep your home.
- Prevent Utility Disconnections: If you’re behind on utility bills, the automatic stay can prevent disconnections for at least 20 days.
- Halt Evictions: While the stay may temporarily stop eviction proceedings, landlords can request to lift the stay and proceed with the eviction.
- Stop Wage Garnishments: If your wages are being garnished, filing for bankruptcy can stop this action and, in some cases, discharge the debt that led to the garnishment.
Exceptions to the Automatic Stay
While the automatic stay provides significant protections, there are certain actions it cannot stop. Some exceptions include:
- Criminal Proceedings: The automatic stay does not stop criminal proceedings, though it may halt collection of related debts.
- Child Support and Alimony: The stay does not prevent lawsuits to establish, modify, or collect child support or alimony.
- Repayment of Pension Loans: Employers can continue deducting payments for job-related pension loans.
- Certain Tax Proceedings: While the IRS cannot seize property or income during the stay, it can still audit you, demand tax returns, or issue deficiency notices.
What Happens If a Creditor Violates the Automatic Stay?
If a creditor violates the automatic stay, they can be held in contempt of court and face penalties. You have the right to take legal action against creditors who continue to harass you after the stay is in place. At Cameron Bankruptcy Law, our experienced Raleigh bankruptcy lawyers can help you take action if a creditor violates the automatic stay.
Hire a Raleigh Bankruptcy Lawyer Today!
If you’re facing overwhelming debt, filing for bankruptcy and benefiting from the automatic stay may be the best option for you. The automatic stay offers immediate relief from creditors and debt collectors, allowing you to focus on regaining financial stability.
At Cameron Bankruptcy Law, we are here to help you understand your options and guide you through every step of the bankruptcy process. Our Raleigh bankruptcy attorneys will work to ensure your rights are protected and help you achieve a fresh financial start.
Call us today at (919) 627-7748 to schedule your free consultation and take the first step toward debt relief!
