What is the bankruptcy automatic stay?

The Bankruptcy Automatic Stay is a law in Nebraska that prevents creditors from collecting debts from a debtor during the bankruptcy process. The Automatic Stay is an important protection for debtors, as it gives them a short “time-out” from creditor activities while their bankruptcy case is being heard in the courts. When a debtor files bankruptcy in Nebraska, the Automatic Stay is put into effect immediately. It basically gives the debtor a shield of protection since creditors are not allowed to contact them, sue them, or seize any of their property. The Automatic Stay also stops the repossession of vehicles, stops wage garnishments, stops utility shut-offs, and halts any foreclosure proceedings. The Automatic Stay is only temporary, however, as it typically ends once the bankruptcy case is closed. Creditors may ask the court to lift the Automatic Stay if they have a valid reason, such as unpaid child support or alimony payments. If the court grants their request, the Automatic Stay will be lifted and creditors can resume their collection attempts. Overall, the Bankruptcy Automatic Stay in Nebraska is an essential feature of the bankruptcy process that helps to protect debtors from aggressive creditors. It allows debtors to focus on resolving their financial situation without fear of aggressive creditor behavior.

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What is the bankruptcy automatic stay?

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