What is an automatic stay under Chapter 13 Bankruptcy?

An automatic stay is a legal protection provided under Chapter 13 Bankruptcy Law in California that stops creditors from taking any action to collect debts from the debtor. This stay applies to all creditors, including banks, creditors, landlords, and even government agencies. The automatic stay is designed to give the debtor some relief from creditors’ collection attempts while they work out a repayment plan or “bankruptcy plan” with the court. It prevents creditors from harassing the debtor with phone calls and letters, garnishing wages, repossessing property, or foreclosing on the debtor’s home. The automatic stay is put in place as soon as the debtor files their bankruptcy petition with the court and continues until their bankruptcy case is over. It is important to note that certain activities, such as child support payments, may still be collected despite the automatic stay. Additionally, if a creditor wants to continue its activity, they can ask the court for permission. It is important to speak with a bankruptcy attorney to understand all of the protections provided by the automatic stay and how to ensure it is enforced by the court.

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What is an automatic stay under Chapter 13 Bankruptcy?

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