• Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.

Automatic Stay In Bankruptcy

Automatic Stay In BankruptcyAccording to the United States Bankruptcy Code, when a debtor file for a bankruptcy, an automatic stay order is issued that prohibits their creditors from pursuing their collection actions against the debtor. In other words, the automatic stay is a legal provision that offers a temporary protection to the debtor from being pursued the clearance of debts owed by them.

Automatic Stay In Bankruptcy

  • In some cases, the debtor might not be able to keep up with their utility bill payments and get threats for disconnection by the concerned agency. An automatic stay prevents the disconnection of your electricity, gas, water, and telephone service for a period of 20 days from the filing of bankruptcy.
  • If you have not been able to make your monthly mortgage payments, your bank might begin foreclosure proceedings. In such cases, an automatic stay will ensure that the bank halts the foreclosure with immediate effect.
  • If you are entitled to public benefits and are overpaid, the agency has the right to collect the overpaid amount from your future payments. An automatic stay will prevent the agency from collecting the overpayments.

What are the exclusions in an automatic stay?

  • The automatic stay does not offer a provision for stopping the IRS from going ahead with their tax proceedings against you. For instance, the IRS can still demand a tax return, carry out an audit, make a tax assessment, demand payment for tax assessments and so on.
  • Filing for a bankruptcy would certainly not prevent a criminal proceeding against you.
  • Even if an automatic stay is issued, you will still be required to repay a loan that you might have taken against your pension.

However, your creditors too have the right to ask the bankruptcy court to lift the automatic stay. For instance, if there is no way that you could keep your property and you creditor requests the court’s permission to proceed with the foreclosure, it is likely that the court will give a green light. Fight creditors with help from a professional. Our experienced Citrus Heights bankruptcy lawyers can stop creditors in their tracks.

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