Hello folks, thanks for all of your help. The automatic stay is for unsecured debts also? Please explain what the automatic stay does. Thanks for all of your help.
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That automatic stay is for ALL debts. Basically, a creditor (secured or unsecured) cannot commence or continue any action to collect a debt that is part of the BK.
Thus, garnishments must stop, creditors can't start a lawsuit, creditors cannot continue to call you or send you letters (which means many creditors will also stop sending regular statements). -
How long does this stay last? Thanks for all of your help.Comment
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Until you BK is discharged, or until a creditor files a motion to lift the automatic stay...if the court grants the request, the automatic stay is only lifted for that creditors particular debt. Generally, the Lift Stay motions are filed by Secured Creditors when you go into the BK behind on payments to that creditors, (i.e. behind on car payments)Comment
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