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The Automatic Stay in Consumer Bankruptcy Cases (Woodstock, IL)

The Automatic Stay

The U.S. Bankruptcy Code Section 362 provides immediate protection to the debtor.  This protection is an injunction called, the "Automatic Stay."  It goes into effect automatically when the bankruptcy case is filed.

If you have questions about the Automatic Stay, contact us online or call our Woodstock area bankruptcy firm at 815-788-9511 for a free evaluation! 

Immediate Protections

The Automatic Stay will immediately:

  • stop creditor calls
  • stop garnishments
  • stop foreclosures
  • stop repossessions
  • stop lawsuits

If a creditor intentionally violates the injunction, the creditor can be held in contempt and can be subject to court sanctions.  Usually, though, creditors are careful to avoid violations of the automatic stay.

Lifting the Automatic Stay

Under certain circumstances, a creditor can obtain permission from the court to resume collections.  If the court grants this permission, the stay will be "lifted," and the creditor can resume collections, such as foreclosure or repossession.  Most creditors do not seek to lift the Automatic Stay. 

If you would like to speak to a Woodstock area bankruptcy lawyer, contact us online or call our bankruptcy firm at 815-788-9511 to get a free consultation! 

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Law Office of Timothy Brown is committed assisting individuals in need of Debt Relief, Bankruptcy Litigation, Chapter 7, Chapter 13, Creditor Harassment Defense, Debt Collection Defense, and Foreclosure law issues in Illinois.

We will discuss your case with you at your convenience. Contact us today to schedule an appointment.