How does the automatic stay protected me from creditors during a Chapter 11 bankruptcy?

The automatic stay is a powerful protection that is put in place when a person files for Chapter 11 bankruptcy in Utah. The stay is an order that tells all of your creditors to stop attempting to collect on any debts that you may have. This means that creditors must cease harassing calls, wage garnishments, and other collection activities. The automatic stay stops creditors from beginning or continuing with any kind of legal action against you. This includes foreclosures, repossessions, or lawsuits. The stay also prohibits creditors from creating new liens against you too. The stay gives you the time necessary to negotiate with your creditors and create a repayment plan. The automatic stay also requires your creditors to request a court order to be able to resume their collection activities. This gives you the chance to negotiate with them and come up with a repayment plan that works for you. If the court approves your repayment plan, the automatic stay will be extended and your creditors will be obligated to follow its rules. The automatic stay is a powerful tool in your arsenal against creditors and is designed to protect you from aggressive collection tactics. This protection allows you to create a repayment plan that works for you, and gives your creditors the chance to get paid on the debt that you owe them. As such, the automatic stay is a valuable resource that can help you in your Chapter 11 bankruptcy proceedings in Utah.

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How does the automatic stay protected me from creditors during a Chapter 11 bankruptcy?

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