What is the bankruptcy automatic stay?

The bankruptcy automatic stay is a key legal protection available to individuals who have filed for bankruptcy in Maryland. It is one of the major benefits of filing for bankruptcy, and it can help relieve a great deal of financial stress and uncertainty. The automatic stay is a court order that immediately stops all collection efforts against a debtor (the person filing for bankruptcy) as soon as the bankruptcy case is filed. This includes any kind of action to collect a debt, such as phone calls, eviction notices, wage garnishments, or lawsuits. It also stops creditors from creating any new liens, or placing additional liens on any of the debtor’s property. The purpose of the automatic stay is to provide the debtor with time to reorganize their finances, without creditors harassing them or taking away their assets. It stops creditors from taking further legal action against the debtor and allows the debtor to get back on their feet financially. It is important to note that the automatic stay is only temporary. The length of the stay will vary depending on the type of bankruptcy case as well as other factors. Creditors can still seek relief from the stay by filing a motion with the court. However, for the time being, the automatic stay provides protection to the debtor in Maryland bankruptcy law and is essential for allowing them to successfully reorganize their financial life and get out of debt.

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What is the bankruptcy automatic stay?

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