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Stop garnishment and debt collection with an automatic stay Atlanta, GA

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Stop garnishment and debt collection with an automatic stay

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The automatic stay is one of the most valuable tools of U.S. bankruptcy protection. Under federal bankruptcy law, as soon as a debtor files for Chapter 7, Chapter 13 or another form of bankruptcy, the automatic stay goes into effect. This means that all debt collection, garnishments, evictions, foreclosures, utility shut-offs, repossessions, and certain lawsuits will come to a halt for the duration of the bankruptcy proceeding.

The automatic stay takes effect at the moment of filing, and it does not matter whether the filer ultimately receives bankruptcy protection (although the stay will be lifted upon the dismissal of a bankruptcy case). However, an automatic stay does not offer absolute protection against creditors. U.S. bankruptcy law gives creditors a few ways around a stay.

First, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 made it more difficult for debtors to repeatedly use bankruptcy as a shield against creditors and debt. Under the law, an automatic stay is limited to a 30-day duration if a debtor has had a bankruptcy case dismissed within the previous 12 months. If the debtor has had two or more bankruptcies dismissed within a year, the stay does not go into effect, leaving debtors with no protection from creditors. A debtor may appeal the denial of the automatic stay, but it will likely be a much longer process than the instant protection usually offered by the stay.

Second, after the automatic stay goes into effect, creditors may petition the bankruptcy court to continue to seek payment on a debt or to continue some other form of debt collection. Although it is not likely, a bankruptcy judge has the power to lift the stay and order a debtor to make payments on a debt. The creditor will have to show some very compelling reason in order for the stay to be lifted, however.

Source: Bankruptcy Home, “How Good is an Automatic Stay?” 14 April 2011

Posted on behalf of Gingold & Gingold

1718 Peachtree St NW, #385
Atlanta, GA 30309

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Our Client Reviews

Gingold & Gingold LLC
5.0 / 5.0

Based on 28 reviews

Jack L.

They did an excellent job with my case. Jamie took the time to really listen and understand things. She delved into the details and was extremely knowledgeable and non judgmental. Very professional and they know what they are doing. Would definitely recommend!

All C.

Mr. Gingold was recommended by an attorney I had worked with previously. I met with Ira Gingold to discuss credit issues. He went over each specific issue thoroughly. He advised me of the potential outcomes. He did all this in one meeting for a very reasonable price. When we finished I was confident in moving forward with a resolution. He definitely wants to help people take the appropriate course of action for their circumstance.

Karen B.

Dear Mr Gingold, There are so many reasons to be thankful for all you have done and will do. Anyone who has ever had unfavorable experiences with an attorney or the legal system will feel the trepidation that I experienced once I realized that my situation seemed hopeless. It was by chance and happily good luck that I decided to put my future and sanity into your hands. I was mortified at having to deal with my debts by claiming bankruptcy. I remember in our first meeting how you assured me that I was not alone and should not feel ashamed. And, anyone in this position obviously does not have money to spare and you were clear about all the costs and allowing me to pay according to my own ability to do so. You advised me in all aspects of the law, but also, you were at each meeting incredibly supportive and complementary of my personal and professional plans. Anyone else in this situation should feel blessed to have access to your expertise and support.

Lyla B.

I thought the process of filing bankruptcy was going to be a difficult one. However, Gingold & Gingold treated me with respect and dignity from the moment I walked through their door. I had the pleasure of working with Jamie. She is very responsive, professional, and knowledgeable. She took the time and listened to my every concern and handled each and every one of them to my satisfaction. My experience with filing bankruptcy under Gingold & Gingold's representation exceeded my expectations in a major way. They gave me such a peace of mind. I am very pleased with my decision of going with Gingold & Gingold to represent me when I filed Chapter 13 bankruptcy.

Julie T.

Wow! I am finally out of debt and can say that I am debt free after completing my chapter 7 bankruptcy case with Gingold and Gingold. Mr dangled was very knowledgeable and direct with regard to my debt situation. there were no surprises and the case went as I was advised. The staff was also very helpful whenever I had a question. I will definitely recommend them in the future to my friends.

Sherard W.

I cannot say enough about this law firm. From the initial consultation to our discharge, the entire office kept me updated with every step of the entire process. I came to the Gingold after a bad experience with another law firm. Ira and Jamie immediately began treating me like family through this experience. In the end, they assisted with eliminating many debts including my 2nd mortgage. I cannot say enough about the experience and knowledge that Ira brought to the table from the office visits to the court time. Thank you very much for helping me through this tough time. Thank you.

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