The main purpose of the automatic stays to protect the debtor and to give them a little breathing room. As stated in a report from the House of Representatives on the bankruptcy code the automatic stay is intended as follows:
- The automatic stay is one of the fundamental debtor protections provided by the bankruptcy laws. It gives the debtor a breathing spell from his creditors. It stops all collection efforts, all harassment, and all foreclosure actions. It permits the debtor to attempt a repayment or reorganization, or simply to be relieved of the financial pressures that drove him into bankruptcy.
The stay also tasked to freeze the debtor’s assets as of the date of filing. This helps in treating all of the creditors fairly. It prevents individual creditors from picking away at the assets of the debtor for their own benefit to the detriment of others. The automatic stay also protects a debtor’s exempt interest in property allowing the debtor a fresh start after bankruptcy.
Additionally, the pause in collection action allows the bankruptcy court to deal with all aspects of the debtor situation in an orderly manner. It stops all other courts actions from interfering with the bankruptcy court proceedings and the bankruptcy process. This pause in action serves for allowing all activity concerning the debtor and the debtor property to be handled in a single form in accordance with the purposes of bankruptcy.
Chris Wesner Can Help
If you or your family needs to get out from a mountain of debt or protect you and your family’s future, you need to speak with an experienced, empathetic, and knowledgeable attorney like the ones at Chris Wesner Law Office, LLC. Give us a call to set up an in person or telephone conference for FREE. That’s right, FREE. Our initial consultation is 100% FREE, with NO STRINGS attached. There is NO FEE if you decide that bankruptcy is not for you. In fact, we OFTEN encourage our clients NOT to file bankruptcy. There is NO FEE for any service whatsoever if you do not file.
Chris Wesner Law Office, LLC has offices throughout the Miami Valley including: Dayton, Xenia, Springfield, Troy, and Piqua with other offices expected to be coming soon like Sidney and Hamilton.