What is the bankruptcy automatic stay?

The bankruptcy automatic stay is an important protection provided to debtors who file for bankruptcy in Idaho. It is an injunction that stops most forms of debt collection, including creditor phone calls, wage garnishments, foreclosure proceedings, and repossession. The stay goes into effect as soon as a bankruptcy petition is filed in court and is intended to give debtors a chance to restructure their finances and come up with a plan to pay creditors. The automatic stay stops creditors from taking any action to collect on any debt that the debtor owes, including repossessing property or taking payments through wage garnishments. This allows the debtor to keep their current possessions and also protects them from harassing phone calls or other forms of communication. The stay is in effect until the bankruptcy case is over. The automatic stay also prevents creditors from filing a lawsuit against the debtor for non-payment. It also prevents creditors from filing a lien on any new property that the debtor buys. However, the stay does not apply to certain types of debt, such as alimony or child support payments. The stay also does not protect the debtor from any criminal proceedings. Overall, the automatic stay is an important protection for debtors in Idaho. It provides a measure of relief by stopping most forms of creditor harassment and allowing the debtor to have some financial breathing room in order to reorganize their debt.

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What is the bankruptcy automatic stay?

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