What is the automatic stay?
The bankruptcy stay is a bankruptcy measure law that prevents creditors from contacting the debtor after you file for bankruptcy. This might be a problem if the lender who owns your house or car decides to stop issuing monthly statements. It is your obligation to ensure that you pay these debts on time; otherwise, the lender may seek permission from the court to seize your home or vehicle.
The filing of the petition results in an automatic stay of all collection actions under 11 U.S.C. 362. Unless the Debtor has filed a prior bankruptcy within the previous 12 months, 11 U.S.C. 301, 302, 101(42).
If the Debtor has filed a previous case within the last 12 months, the automatic stay is only good for 30 days. §362(c)(3)(A).
If the debtor wishes to extend the automatic stay, he or she must make an application to extend the stay as soon as the bankruptcy is filed.
If the Debtor has filed two or more cases in the last 12 months, there is no automatic stay. §362(c)(4)(A)(i)
A case that has been dismissed is still a filed case. A Debtor’s failure to grasp these restrictions is not an excuse.
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