Please Clarify: Automatic Stay

[anonymuse]

automatic stay: An injunction that
automatically stops lawsuits, foreclosures,
garnishments, and all collection activity against
the debtor the moment a bankruptcy petition is
filed.

Does this just apply to the creditors you are behind on or all of your creditors? Does "all collection activity" include your normal ongoing payments?

I have to list every creditor, but I'm up-to-date with student loans, mortgage, home equity loan (just not credit cards and medical bills--the ones I want to discharge).

I have most of my payments automatically withdrawn from my checking account. When the automatic stay goes in effect, will all or just some of the creditors stop the automatic payment deductions?

[FilingOnMyOwn]

It does apply to all of your creditors, and they should not make any effort to collect from you during the stay. However, if you were to stop paying on your house, they could foreclose on you AFTER the stay is over. So you should stay current on the bills that you are reaffirming, and only stop paying on your unsecured debt and the debts that are not dischargeable.

[Minnymouth]

FilingOnMyOwn is correct.

Keep paying on all items that you are going to keep - such as mortgage payments, auto payments, etc. Keep all utility bills current - thus avoiding having to pay a big deposit in the future...

Only stop paying the ones that will be discharged such as credit cards, etc.
Student loans will go in deferment temporarily until your bankruptcy is discharged - then you will resume payments on them if you have them.

Any and all "collections" will be discharged unless they are on student loans, taxes, etc....

[jane taylor]

Whatever loans, cc's, etc. you decide to stop paying, you will need to contact the creditor yourself to stop the automatic draft. NCO did an automatic draft as well as the IRS. It wasn't hard to do. Good luck.

jane