I Have Heard Of Something Called An “Automatic Stay.” What Is It?
The filing of a bankruptcy petition operates as a restraining order against most pending or contemplated proceedings or actions by creditors or interested parties, including taxing authorities. Exceptions include actions in a marital dissolution proceeding to establish, modify or enforce child custody and child or spousal support, and criminal proceedings against the debtor by the state or federal government. If the debtor receives a summons or notice of action taken by a party in interest, notify the Law Offices Of Hagen & Hagen so that a notice of the pendency of the bankruptcy proceeding can be forwarded to the opposing party. Note that some nonbankruptcy courts, despite the clarity of the United States Bankruptcy Code, are reluctant to recognize the existence of the automatic stay. It is therefore imperative that debtor contact the Law Offices Of Hagen & Hagen immediately upon receipt of a summons or a notice of a nonbankruptcy action. Additionally, if the debtor receives any threa
