SCHREIBER LAW OFFICE, LLC
As soon as a bankruptcy is filed, the “automatic stay” takes effect. Simply put, the automatic stay puts an
immediate stop to creditor’s collection efforts. This includes foreclosures, evictions, repossessions,
garnishments, utility shut-offs, lawsuits, phone calls and more. The bankruptcy code has penalties in place for
creditors that violate the automatic stay.
If you’re behind on your house or car payment and are being threatened with a repossession or foreclosure, filing
for bankruptcy may be what you need to give yourself some breathing room and keep the property. There’s a good
chance the lender wants several months of back payments now. Filing for bankruptcy does 2 things: It stops the
foreclosure or repossession immediately, AND allows you to pay back the missed payments over time, sometimes
up to 5 years!
If you’re stuck in a mortgage or car loan and you want to get out of it, you have that option too. You can choose to
surrender the collateral and discharge the loan in the bankruptcy.
Gas and electric shut-offs are also cancelled by filing for bankruptcy, and because there’s no collateral, the amount
owed can be discharged in the bankruptcy.
MINNESOTA BANKRUPTCY LAW FIRM
THE BANKRUPTCY CODE’S AUTOMATIC STAY PROVIDES INSTANT RELIEF