Recovery Law Group

  Despite being a misunderstood concept, the "automatic stay" is a basic bankruptcy principle. The automatic stay typically kicks in the moment a debtor submits a bankruptcy petition. While trying to rearrange their debts and financial concerns, a debtor is protected by it from the reach and contact of creditors, which is one of the main benefits of automatic stay .     Purpose of Automatic Stay    The debtor and their creditors are both protected by the automatic stay. Debtors gain a respite from the ongoing collection efforts and can concentrate on developing a workable plan for a reorganization action without feeling undue pressure from particular creditors . Additionally, the automatic stay guarantees that all debtors are treated fairly. Without the automatic stay, the assets would most certainly be taken by the first creditors to make legal claims, leaving the other creditors with nothing.   Preventions of Automatic Stay    • For as long as your bankruptcy case is activ