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

The automatic stay is a powerful tool that provides protection for individuals and businesses filing for Chapter 11 bankruptcy in Virginia. When a bankruptcy petition is filed, the automatic stay immediately prohibits creditors from taking any collection actions, such as calling you to demand payment or filing a lawsuit against you. The terms of the automatic stay also mean that creditors cannot repossess any property that you own, such as your car and home. Additionally, creditors cannot garnish your wages, seize your bank accounts, or attempt to collect on any debts you owe them. The automatic stay also prevents creditors from calling or writing to you to demand payment. In fact, they must stop any attempts to contact you altogether. This includes calling you, sending bills, suing you, or repossessing any property that you own. The automatic stay also prevents creditors from sending you message through the mail, email, or social media. By protecting you from creditors during a Chapter 11 bankruptcy, the automatic stay allows you the much-needed time to develop a reorganization plan and gather the resources you need to repay your debts. This prevents creditors from taking action against you and gives you the control over your financial situation.

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

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