As soon as you file for bankruptcy, the "automatic stay" goes into effect. An automatic stay is provided for in section 362(a) of the Bankruptcy Code. The purpose of this court order is to give the debtor "a breathing spell from his creditors, stopping all collection efforts, all harassment, and all foreclosure actions." As such, most collection activity temporarily stops. Below is a sample list of some of actions the automatic stay may temporarily stop upon filing for bankruptcy.
Once you file for bankruptcy, the automatic stay prohibits actions, such as:
Even when you file for bankruptcy in Michigan, the automatic stay does not stop all actions. Some of these actions not prohibited by the automatic stay are:
Ypsilanti / Ann Arbor Bankruptcy Attorney Lander McLoyd is an experienced Michigan Bankruptcy and consumer law attorney. If you have questions about filing for Bankruptcy in Michigan or need to know more about the automatic stay, contact Lander McLoyd for a free Bankruptcy consultation. We're here to help!