Automatic Stay Provisions
Stop Lawsuits, Stop Garnishments, Stop Levies, Stop Wage Garnishments, Cancel Writ of Executions and Stop Creditor Harassment
Upon filing a personal bankruptcy petition the U.S. Bankruptcy Code's Automatic Stay goes into effect. The Bankruptcy Codes Automatic Stay is a powerful weapon for debtor(s) to assert against their creditors. The U.S. Bankruptcy Code provides for serious sanctions, including compensation for all damages and all reasonable attorneys' fee incurred by debtor(s) in order to prevent and stop all/any Automatic Stay violations. This includes damages for all intentional and even non-intentional Stay violations by creditors. Pursuant to the Codes Automatic Stay, creditors and their attorneys must immediately stop all lawsuits including, but not limited to, all wage garnishments, writ of executions, etc. upon notification of the debtor(s) filing for bankruptcy protection.
It is important for debtor(s) facing lawsuits to come in for a consultation as soon as possible with Mr. Alster. If debtor(s) qualify for bankruptcy protection, the debtor(s) petition should be filed as soon as possible in order to prevent the debtor(s) creditors from procuring judgments for the following reasons:
Once a creditor receives a judgment, they can apply for a wage garnishment against the debtor(s) and levy on most or all of the debtor(s) assets. If the debtor(s) assets, such as bank accounts are taken and attached prior to the bankruptcy filing, the creditor may be able to keep those funds. However, if the debtor(s) files a bankruptcy petition before the assets are located and attached by the creditor, in almost all cases the creditor must release or have the Writ of Execution issued against the debtor(s) assets cancelled.
Once a judgment is entered and filed with the Superior Court of New Jersey, that judgment acts as a lien against any real property that the debtor(s) currently own or might own in the future for a twenty (20) year period, which can be renewed for a second 20 year period by the creditor. This judgment is considered a secured lien against the debtor(s) current real property or real property debtor(s) may purchase in the future and as such are not dischargeable. The judgment remains on the debtor(s) credit for seven (7) years, hindering the debtor(s) ability to rebuild credit with the three (3) national credit reporting agencies. All of this can be avoided if debtor(s) come in for a consultation, preferably before being served with creditor lawsuits. Certainly debtors who are facing one or more lawsuits should come in as soon as possible.
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An additional benefit of retaining The Law Offices of Marc G. Alster is once our office is retained our client(s) are instructed to advise creditors that any further communications are to be directed to our office concerning the debt. It is important to note that it is illegal for creditors to contact debtor(s), once the debtor(s) notify the creditor that they have retained the services of an attorney. At the time of retaining our office, new clients will be given a handout spelling out how to handle all creditors that may be contacting or harassing them. The Fair Debt Collection Practice Act provides for strict penalties for each and every violation committed by creditors or their agents.