Instant Relief - Chapter 13

The moment your Orange County Chapter 13 bankruptcy file is stamped by the court, you have instant relief from creditors and collection notices. This instant relief is known as an Automatic Stay, and it bars creditors from pursuing collection activities against you for the duration of the bankruptcy case. You don't have to ask for the automatic stay - it happens as a part of the bankruptcy process and it goes into effect the moment your documents are stamped by the court. All creditors you have listed on your bankruptcy filing will be notified by the court of your Orange County bankruptcy case, and all collection attempts will be halted.

The automatic stay includes repossession attempts that may occur if you've missed car payments or payments on other items, and it also includes foreclosure proceedings. It even covers eviction proceedings, but be aware that in the case of eviction, your landlord may be able to get the automatic stay lifted, so be certain to let your attorney know your situation if that is a concern. If you have assets that are not a part of the bankruptcy estate, these will not be covered by your automatic stay. An automatic stay under a Chapter 13 bankruptcy applies only to those assets and possessions that are a part of the bankruptcy estate. Additionally, if you've had one or more bankruptcy cases dismissed in the last year, you should be aware that the Chapter 13 automatic stay may not be available to you.

One of the benefits of Chapter 13 bankruptcy that is not available in Chapter 7 bankruptcy is that the automatic stay applies not only to you, but to any co-debtors who may be listed on your accounts as well. This means if you are married, and have joint accounts with your spouse, your spouse will be protected form collection attempts, even if you file for bankruptcy on your own. Additionally, if you have a cosigner on your car or other items, the automatic stay under Chapter 13 will protect that cosigner and prevent further collection activities.

If yourcreditors do attempt to collect from you after the bankruptcy, you may be able to sue for damages. In some cases, you may even be able to recover more than you owe that creditor if they violate the automatic stay. Therefore, it is important for you to keep track of any collection notices or phone calls that you receive after your bankruptcy. If you have legal representation from our experienced Orange County Bankruptcy Law Firm, we will represent your interests in this type of situation and work to recover damages on your behalf.

The automatic stay is one of the many benefits of filing for Chapter 13 bankruptcy. Imagine the peace of mind you can feel when the collection calls cease, the letter demanding payment stop, and you are able to get your life back together without the burden of constant creditor harassment. We can help you get on the right track to a full financial recovery though Chapter 13 bankruptcy. Contact our premier Orange County Bankruptcy Law Firm and let one of our trusted Orange County Bankruptcy Attorneys provide  you with a free initial case evaluation as soon as possible. Don't wait - take advantage of the automatic stay and get your life back in order without creditors' constant harassment.