The automatic stay is the magic bullet of the bankruptcy code. Once you file bankruptcy – either Chapter 7 or Chapter 13 – the automatic stay prohibits all of your creditors from taking any action to collect a debt from you. This means that creditors can’t call you on the phone, repossess your car, garnish your wages, levy your bank accounts, or file a lawsuit against you – and if a lawsuit is ongoing it stops (this includes foreclosures).
The automatic stay continues in place while your bankruptcy case is pending (Chapter 7) or as long as you continue to make your plan payments (Chapter 13). If creditors do take any action against you in violation of the automatic stay, the bankruptcy code allows you to file a motion against that creditor for violation of the automatic stay and to request an award of compensatory damages, punitive damages, and attorney fees from that creditor.
If you are being sued or harassed by creditors, maybe it’s time to talk to a professional about your options. As experienced Georgia bankruptcy attorneys, The Ballard Law Group can evaluate your individual situation and advise you as to whether a Chapter 7 or Chapter 13 bankruptcy proceeding would be in your best interests. Call us today at 404-220-9916 to schedule your free initial consultation at either our Atlanta or Lawrenceville office.