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What to know about the automatic stay

Bankruptcy can be an important legal step toward a Tennessee resident gaining control over their debts and finances. While not every debtor will require the stringent processes of bankruptcy to get themselves back on solid financial footing, others may need it and its eventual discharge to secure stronger ground on which to rebuild their lives. However, even before discharge happens in a personal bankruptcy may a person begin to experience the benefits of having filed for the process.

One reason that individuals choose to file for bankruptcy is so that they may experience the automatic stay. The automatic stay is a part of most personal bankruptcies and it effectively stops any actions by creditors against debtors who file. For example, once a person successfully files for bankruptcy their creditors can no longer garnish their wages for the repayment of their debts.

Similarly, the automatic stay stops a person's foreclosure proceedings, at least until the end of their bankruptcy. It can keep a person from being evicted from their rental property during the tenure of their bankruptcy and it may help a person keep utilities running to their home when foreclosure and eviction are threatened. In essence, the automatic stay makes many of the detrimental consequences of debt stop so that a person can assess their bankruptcy needs and move forward with a plan to eliminate their debts.

This post is not intended to provide legal advice and readers should know that all personal bankruptcy proceedings will advance based on their own facts and merits. Attorneys who work with personal bankruptcy clients are important resources for individuals who require more information about the automatic stay and other bankruptcy matters.

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Kenneth C. Rannick, P.C.
4416 Brainerd Road
Chattanooga, TN 37411

Phone: 423-624-4002
Toll Free: 800-257-7594
Fax: 423-624-0509
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