One of the many reasons that bankruptcy can be such an effective and powerful debt relief option is because of something known as the automatic stay. In this two-part blog, we will discuss some of the main features of the automatic stay and how they can help you when you file for bankruptcy.
If you have questions about whether filing for bankruptcy is the best course of action for obtaining debt relief and are ready to get more specific answers regarding your situation, you are encouraged to contact Denver Bankruptcy Lawyer Arthur Lindquist-Kleissler.
Automatic Stays Protect You from Creditors
When an automatic stay in bankruptcy goes into effect, this court order will prevent creditors from pursuing any further actions against you in their efforts to collect on outstanding debt. Effectively, this means that creditors will not be able to move forward with attempts to:
- Foreclosure on your home
- Repossess your vehicle(s) or other assets
- Garnish your wages
- File lawsuits against you.
It’s important to note here, however, that if a wage garnishment has already gone into effect (or if your assets have already been repossessed or a judgment has already been issued against you in a lawsuit), automatic stays cannot reverse these actions. Therefore, it’s crucial that people who have been warned of such actions by creditors seriously consider filing for bankruptcy to prevent creditors from being able to move forward with these punitive actions.
Automatic Stays Take Effect Immediately
The protections provided by automatic stays in bankruptcy will be effective as soon as a person files for bankruptcy. This is a powerful aspect of these court orders, particularly when people are facing imminent action by creditors.
Be sure to check out the upcoming second part of this blog for more important information about automatic stays in bankruptcy.
Denver Bankruptcy Lawyer at Lindquist-Kleissler & Company, LLC
If you are buried in overwhelming debt or are facing a serious financial crisis, Denver Bankruptcy Lawyer Arthur Lindquist-Kleissler can help you figure out your best options for resolving your financial issues.
Since 1979, Mr. Lindquist-Kleissler and the other legal professionals at Lindquist-Kleissler & Company, LLC have been successfully representing both individuals and businesses seeking debt relief through bankruptcy. From simple to complex bankruptcy cases, Mr. Lindquist-Kleissler can always be trusted to maximize utilization of Colorado Bankruptcy Law to effectively guide his clients through bankruptcy and help them achieve the best possible outcomes to their cases.
Contact Us for a Free Consult
For a free 30-minute consult and a free bankruptcy packet, contact us by calling (303) 691-9774, or email us using the form on this page. You will pay nothing up front to obtain trusted, professional advice regarding your case and your options.
From our office in Denver, Arthur Lindquist-Kleissler represents clients throughout the Great Denver Metropolitan area and Colorado, including (but not limited to) Aurora and Arapahoe County.