Instant Relief - Chapter 13

When you file for Chapter 13 bankruptcy in California, an automatic stay goes into effect immediately. This automatic stay bars your creditors from pursing any collection attempts, lawsuits, wage garnishment, or other collection activities for the duration of the bankruptcy filing. You can even halt foreclosure proceedings with the automatic stay, allowing you to continue negotiations with your current lender, or giving you time to find a buyer for the home in order to avoid foreclosure.

You don’t have to do anything special to qualify for the automatic stay in a California Chapter 13 bankruptcy case – just having your case accepted by the court will bring the automatic stay into effect. While creditors can petition the court to lift the stay on a case by case basis, any creditors that knowingly violate the automatic stay may be found guilty in court and ordered to pay damages in excess of the amount you owe. This directly translates into an end to collection calls, delinquency notices, attempts at wage garnishment, bank levies, and/or lawsuits to recover money that you owe.

By putting an end to the collection attempts by your creditors, you can once again have peace of mind as you move forward to proactively deal with your debt problems. For the vast majority of potential bankruptcy filers, this is one of the most tangible immediate benefits to filing for Chapter 13 bankruptcy in California. The reprieve offered by the automatic stay can help you put things into perspective, and gain fresh motivation when it comes to seeking personal financial freedom.

While the benefits of the automatic stay are numerous, there are certain circumstances in which an individual may not qualify for the protection of the automatic stay. In particular, if you’ve had a bankruptcy case dismissed within the past year, your Chapter 13 bankruptcy filing won’t trigger an automatic stay. Instead, you’ll have to request the stay from the court directly – and it will only last for 30 days from the time it is granted, unless the court is petitioned to have that time period extended. If you’ve had two or more California bankruptcy cases dismissed by the court in the past year, you will most likely not be able to take advantage of the automatic stay, unless there are extenuating circumstances that come into play.

Because bankruptcy cases can be dismissed due to an incomplete filing, or for failing to meet certain deadlines, it’s important to be certain your case is handled by a true professional who understands California bankruptcy laws. Our firm has years of experience helping individuals who need Chapter 13 bankruptcy protection, and we can help you as well. Contact our office today and arrange for your free initial case evaluation as soon as possible. The sooner you have qualified, expert legal advice about your California Bankruptcy case, the sooner you will be able to take full advantage of the automatic stay and the benefits it provides.