What is the Automatic Stay?

The filing of a bankruptcy in Utah offers an individual immediate protection from virtually all creditor collection efforts.  These activities usually include:

  • The commencement or continuation of an action against the debtor for a claim that arose before the fling of the bankruptcy;
  • The enforcement of a judgment obtained before the filing of the bankruptcy;
  • Any act to obtain possession of property of the bankruptcy estate;
  • Any act to create, perfect, or enforce any lien against property of the estate;
  • Any act to create, perfect, or enforce a lien against property of the debtor to the extent that such lien secures a claim that arose before the filing of the bankruptcy;
  • Any act to collect, asses, or recover a claim against a debtor that arose before the filing of the bankruptcy;
  • The setoff of any debt owing to the debtor that arose before the filing of the bankruptcy;

The automatic stay under 11 U.S.C 362 provides an immediate and fundamental benefit to an individual in that it gives the individual relief from creditors.  It stops all collection efforts, harassment, and foreclosure actions.  The automatic stay allows an individual to reorganize and/or to be relieved of their obligations.

To get immediate relief from your creditors, contact us by Phone at (801) 432-8682.