Tweet

What is an automatic stay?

Written by: Dustin Bower

Article Overview: An automatic stay is created when a person files for bankruptcy under either Chapter 7 or Chapter 13.

What is an automatic stay?

An automatic stay is created when a person files for bankruptcy under either Chapter 7 or Chapter 13.

While it is in effect, creditors cannot: • Try to bring a claim against you

• Try to enforce a judgment against you

• Try to gain property from you

• Try to create, protect or enforce any sort of lien against you

• Try to collect debts from you

In short, while you are protected by the automatic stay, you are safe from creditors. If they violate this stay, then they are liable for damages. It is important to give your creditors notice that you filed, so as to prevent them from harassing you as quickly as possible.

This protection is not absolute, unfortunately. It does not protect you against:

• criminal proceedings

• family support obligations

• losing a license

• creditors collecting from property that is not part of your estate

• the interception of a tax refund

• tax audits, being given notice of tax deficiency, demands for tax returns, or demands for payment of taxes (this only works on taxes that are not discharged)

The stay remains in effect until:

• the case is closed or dismissed

• discharge is granted or denied under Chapter 7 bankruptcy

• the property with a claim on it is no longer part of the estate

• the court acknowledges a request from a creditor to release the stay

In a Chapter 7 bankruptcy, the stay is replaced by a permanent injunction when the case is discharged, as part of the total discharge of debt. In a Chapter 13 bankruptcy, the stay remains until the completion of the Chapter 13 plan.

If you had filed once already this year and had it dismissed, then the stay is limited to 30 days. If you have filed at least twice this year and they were both dismissed, then you do not get a stay.

Related Articles
  What I Learned from David Bach the Automatic Millionaire
  Innovation
  Guaranteed Used Car Loans Approval for People with No Credit
  Sales Stops & Starts
  How to Exterminate Mental ANTs

Article Tags: br, chapter 13 bankruptcy, chapter 7 bankruptcy, creditor, creditors, criminal proceedings, damages, debts, interception, judgment against, permanent injunction, person files, support obligations, tax audits, tax refund, tax returns



Related Forum Posts
Re: Twitter direct messages qustion - Hi Evan, Is there an automatic way of detecting the auto-DM's versus the genuine DM's? It's pretty easy to tell which is which when looking at them yourself. I'm not sure if there's an automatic way of handling this, though. Maybe someone out there knows of something. I don't use the auto DM feature either. It's very impersonal, and if I did use it, I wouldn't be promoting anything. I completely ignore most all DM's I receive. There are a few that I do like; however, these are a diamond in the rough. As far as the auto-follow, I don't use this. Like GT, I like to personally screen everyone that is following me because there are some that I have no interest in whatsoever. I barely ever take the time to look at updates from everyone I'm following anyway.
Re: Google +1 is out! - Hi GT - it should be automatic if you're logged into your Google account. Thanks for the feedback - we'll see how it goes!
Earning respect - [quote:31cuvpm1] I still say it takes time and no one is entitled to "automatic" respect. [/quote:31cuvpm1] Well, I may be arguing semantics here but I think *everyone* is entitled to automatic respect - until they prove they don't deserve it. I wonder if affirmative action is the problem...or the "quota system" The stereotype is that women and minorities who get jobs because of affirmative action don't deserve the jobs, but had to be given them. And if just one person who got a job through affirmative action turns out to be a loser, well of course that just invalidates the whole program, doesn't it!!! Just as if one man screws up in business - it's seen by all that it was just he as an individual who screws up, but let *one* woman or minority screw up, and the reaction is... "See, that [i:31cuvpm1]proves [/i:31cuvpm1]women/minorities shouldn't be in such-and -such a position!"
Links for improving google rankings - Hi everyone! I am starting to receive all these automatic emails asking for a link exchange. I am curious to know which ones I should accept. Are they legit? Will they help me? They have nothing to do with my business so there is no relevance. Thanks!
Re: How to network for inventors - Hi Kevin, You need to find ways to keep in touch and stay top of mind. What I've done, for example, is created a list of the most important 30 people that I want to stay in touch with. Some of top authors, some are customers, some are partners, some are prospects, etc. I make a point to find a way to stay in touch with them every month by helping them out. I'll look for articles that might support their business, try to make introductions that will be useful and invite them to events that they will find valuable. You can't do this for everyone you meet because you also have your business to run and it can be time consuming but try to separate your list out so you find ways to stay in touch with the most important people who can have a significant impact on your company.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

B2B PR – Planning for Success

10 Ways to Handle Objections Effectively

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.