There are many exceptions to the automatic stay. Several new limitations on the imposition of the automatic stay, especially for repeat filers, were included in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. The most prominent of these exceptions 17 relates to the termination of the stay against the debtor on the 30th day after the filing of a new case if the debtor had a prior case dismissed within one year of filing the present case, or if a debtor fails to accept a lease.

What Happens After I File Bankruptcy?

This bankruptcy information is from the United States Bankruptcy Court in the Eastern District of California:
Upon filing the original petition with the Clerk's Office, the "automatic stay" immediately takes effect and prohibits all creditors from taking certain collection actions against the debtor or the debtor's property. Although the stay is automatic, creditors need to be advised of the stay. The court issues a notice to all creditors advising them of the filing of the bankruptcy, the case number, the automatic stay, the name of the trustee assigned to the case (if filed under chapter 7, 12, or 13), the date set for the meeting of creditors (called the "341 meeting"), the deadline, if any, set for filing objections to the discharge of the debtor and/or the dischargeability of specific debts, and whether and where to file claims. The exact information in the notice differs depending on the chapter under which the case is filed.

f you are one of the many homeowners today who is worried about this happening to you, take action first. If you have not kept your mortgage current and your mortgage company has already filed a Notice of Default filing for bankruptcy will stop the foreclosure process, you must take action immediately to protect your interest in your home. We are experts at protecting your interest in your home.

The stay ends when the plan is confirmed since it is no longer needed. The plan governs the behavior of the creditors in the plan and any attempt to collect on a debt covered by the plan is a violation of the court order. The plan allows a homeowner to continuing paying the loan while buying time to pay off arrearages on the loan as part of the Chapter 13 bankruptcy plan.

Many people file for bankruptcy to prevent their homes from being taken in foreclosure. The automatic stay will temporarily prevent a foreclosure no matter which type of bankruptcy you file. In a Chapter 7 bankruptcy the creditor may be able to have the stay lifted and proceed with the foreclosure. In a Chapter 13 bankruptcy, the foreclosure may be permanently stopped. The automatic stay remains in effect until the court confirms the Chapter 13 plan or the case is dismissed.

Stop Foreclosure NOW!

Very few people buy their home with the idea that they will end up in foreclosure. The majority of people just want to live in their homes, make their monthly payment and enjoy them. However, sometimes there are circumstances beyond your control that can cause your home to go into foreclosure. This could happen because of a death in the family, a serious illness, becoming unexpectedly unemployed, getting divorced, losing a second income, being demoted or denied a promotion, incurring unexpected and excessive debt, ending up with unexpected maintenance costs, having an adjustable rate mortgage, or other reasons.

Stop Court Judgments

If you have been sued or if you have received an adverse court judgment, filing for bankruptcy will stop the lawsuit or the enforcement of the judgment, but you must take action immediately to protect your interests. We can protect you from an adverse judgment. Email us at mail@rustarmenis.com or call us at 1-866-RAS ATTY (1-866-727-2889).