Connecticut Bankruptcy Attorney Provides Advice Regarding Automatic Stays
Connecticut Law Firm Protects Your Rights During Bankruptcy
In U.S. bankruptcy law, an automatic stay is an injunction that requires creditors to stop collection efforts against a bankruptcy petitioner, with certain exceptions. The stay begins the moment a bankruptcy petition is filed, although secured creditors may petition the bankruptcy court for relief from the automatic stay if they can show cause that it should be lifted.
Provisions of an Automatic Stay
An automatic stay protects a debtor from various creditor actions, including:
- Beginning or continuing court proceedings against the debtor
- Initiating actions to obtain the debtor's property or create, perfect, or enforce a lien against it
- Disconnecting the debtor's water, electricity, gas, or telephone service for at least 20 days
- Foreclosing or evicting the debtor from his home, although probably only temporarily
- Collecting overpayments of public benefits
- Garnishing wages – no more than 25 percent of the petitioner's wages may be taken to satisfy court judgments and up to 50 percent for child support and alimony
There are some instances when an automatic stay cannot help a debtor, including:
- Certain tax obligations
- Support actions including child support and alimony
- Criminal proceedings
- Money will still be withheld from a debtor's paycheck to pay back loans from a pension plan or IRA
Lifting an Automatic Stay
A court may give a creditor relief from an automatic stay if he can show that the stay does not provide him with adequate protection or if it threatens his interest in certain property. To get the stay lifted, the creditor must file a motion and has the burden of convincing the court that there is sufficient reason for the stay to be lifted.
If creditors are harassing you, the bankruptcy attorneys at Susan M. Williams LLC can help you obtain an automatic stay to provide relief during a tense financial situation. Contact us online, via e-mail, or call 860-265-4928 to schedule your free initial consultation today.