The automatic stay is a statutory injunction against certain creditor collection activity that comes into effect immediately upon the filing of a bankruptcy petition. It is called the “automatic” stay because creditor and governmental entity collection activities are “stayed” automatically upon the filing of a Chapter 7 or Chapter 13 bankruptcy petition in Atlanta (or under any Chapter in any city). There are several exceptions to the automatic stay, including the prosecution of criminal charges, the establishment of paternity, modification of a child support order, or for the dissolution of a marriage. Also, the IRS is not stayed from auditing your tax return, so filing bankruptcy will provide you no protection if you are currently being audited. Tax liens can also be attached to your real property during this time. The automatic stay does operate to stop all wage garnishments, foreclosures, creditor phone calls, harassing letters, and car repossessions.
If you think bankruptcy might be the right choice for you, contact an Atlanta bankruptcy attorney who can help.