A Spokane bankruptcy attorney can help you evaluate the best route to eliminate most debt. If you are living in debtor's prison and feel like you cannot catch up with your bills and obligations, bankruptcy might be a good option for you.
Remember, if you file all your paperwork correctly, your filing will place an automatic stay against all collection proceedings. The automatic stay acts as a gatekeeper and it will help you achieve the following:
1. The stay is automatic and begins the moment that your Spokane bankruptcy attorney files the bankruptcy petition for you.
2. The stay works to prevent creditors from forcing the bankruptcy petitioner from paying any particular debt while the court is sorting things out.
Things that are stayed:
Activity Against the Debtor – the stay prohibits all activity against the debtor relating to the collection of claims that arose before the commencement of the bankruptcy case, including:
a. Commencement or continuation of a judicial, administrative, or other action that could have been commenced before the bankruptcy case began, or to recover a claim against the debtor before the commencement of the bankruptcy case;
b. The enforcement of a judgment obtained before the bankruptcy case;
c. Any act to obtain possession of the property of the estate or property from the estate or to exercise control;
d. Any act to create, perfect, or enforce any lien against the debtor’s property to the extent that such lien secures a claim that arose before commencement of the case under the particular section;
e. Any act to collect, assess, or recover a claim against the debtor that arose before filing;
f. The commencement or proceeding before the tax court concerning a corporate debtor’s tax liability or a personal debtor’s tax liability for a taxable period ending prior to the filing of the estate;
Post-petition transactions by the debtor do not give rise to claims against the estate but are the debtor’s own responsibility. They can be enforced against the debtor through the normal collection methods of non-bankruptcy law.
Activity Against Property of the Debtor
a. The stay also prohibits any steps to create, perfect, or enforce a lien against property of the debtor to secure a pre-petition claim;
b. Property acquired by the debtor after the petition, as well as certain property released to the debtor from the estate, falls into the new fresh start estate of the debtor;
c. Forbids pre-petition creditors from seeking to satisfy their claims by attempting to establish or enforce liens against the debtor’s fresh start property.
Activity Against Property of the Estate
The automatic stay applies to both the pre-petition and post-petition claims.
A post-petition creditor of the debtor has no claim to property of the estate and has no right to try to reach estate property, and cannot take any action to create, perfect or enforce a lien against property of the estate.