How Can I Obtain or Extend an Automatic Stay in Bankruptcy?

When you file for personal bankruptcy, once of the most significant protections that applies almost immediately is the automatic stay. Under 11 U.S.C. § 362, a petition for bankruptcy protection, including filings under both Chapter 7 and Chapter 13, result in an automatic stay. What is an automatic stay? In short, it prevents creditors from continuing to collect from you while you are awaiting a bankruptcy discharge or reorganization (depending upon which type of bankruptcy protection you are seeking). It is important to understand how an automatic stay can protect you—and how, on the flip side, it cannot—and to learn more about ways for extending the automatic stay.
Learning More About the Automatic Stay
When you file for bankruptcy, the automatic stay protects you, as we noted, from constant contact with creditors that are attempting to recoup what you owe. What precisely does the automatic stay do? According to 11 U.S.C. § 362, the automatic stay prohibits creditors from engaging in some of the following actions:
  • Commencement or continuation of a certain legal actions against you to recover debt;
  • Enforcement of a legal judgment against you;
  • Actions to obtain possession of your property;
  • Actions to create or enforce liens against your property;
  • Any actions to “collect, assess, or recover a claim against the debtor that arose before” the debtor filed for bankruptcy; and
  • Commencing or continuing certain tax liability proceedings.
Yet there are limitations to the automatic stay. The law makes clear that the automatic stay does not apply in a number of situations, including but not limited to:
  • Commencement or continuation of criminal actions against you;
  • Commencement or continuation of civil actions to establish paternity;
  • Civil actions to establish or modify domestic support obligations;
  • Civil actions related to child custody or child visitation;
  • Civil actions concerning the dissolution of marriage (but not necessarily including property division);
  • Civil actions related to domestic violence;
  • Collection of domestic support obligations; and
  • Withholding, suspension, or restriction of certain licenses, such as a driver’s license or occupational license.
For many debtors, the automatic stay provides much-needed relief. But if you file for multiple bankruptcies, you may need to learn more about extending the automatic stay.
Extending the Automatic Stay
As the law explains, in certain circumstances, if you previously filed for bankruptcy within the last year under chapter 7, 11, or 13, the automatic stay does not continue until the end of your bankruptcy proceeding. You may only receive this relief for 30 days after you file your bankruptcy petition. As such, you will need to know more about filing a motion to extend the automatic stay.
The most important thing for consumers in this situation to know is this: you can in fact file a motion to extend the automatic stay. A news release from the U.S. Bankruptcy Court for the Central District of Illinois recently explained that debtors are eligible to extend the automatic stay “upon a demonstration that the current case was filed in good faith.” Your bankruptcy attorney can help you with the specifics.
Bankruptcy law is very complex, and debtors who have questions about consumer bankruptcy should always speak with an experienced Chicago bankruptcy lawyer before making any decisions. Do not hesitate to contact the Emerson Law Firm to learn more about the services we offer.
See Related Blog Posts:
Receiving Credit Card Offers After Bankruptcy

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