Understanding “automatic stay” in Chapter 11 Bankruptcy
Posted on Monday, January 16th, 2017 at 5:44 pm
Many individuals will find themselves in the frustrating situation when they can no longer manage the debts in their business. For those who are seeking freedom from overwhelming debts, filing Chapter 11 bankruptcy is worth considering, as they can be protected by “automatic stay.”
During an automatic stay, debtors are provided with a certain immunity by the court from their creditors, including unfavorable actions that could be done against them. For a period of time, debtors under automatic stay can have the peace of mind that their property will not be foreclosed or repossessed. Creditors are also prevented from insisting debtors make payments that they could not afford. Debtors who have filed for bankruptcy, however, should note that creditors could go after their property and liquidate it if it has nothing to do with the filing.
If you have considered filing for Chapter 11 Bankruptcy, enlisting a skilled attorney is important, especially if you want to make sure that you get the best judgment you deserve. Find out how an attorney of Bradford Law Offices, PLLC in Fayetteville may work for you today by calling (910) 668-0006.