Bankruptcy Secrets
Automatic Stay Limitations
In the past once you started the bankruptcy ball rolling you received the benefit of something called the "automatic stay". Under the old automatic stay your entire financial life came to a screeching halt. Collection agencies couldn't move against you. Your landlord couldn't evict you. They were legally forced to stop all collection activity.
But under the new bankruptcy law all that has been changed. You'll receive much less protection. Your landlord will now be able to evict you (this will cause countless families to become homeless), your professional license can be withheld, suspended, restricted or revoked, many different kinds of lawsuits will no longer be halted including paternity, child custody and child support. Divorce proceedings will no longer be stopped by a bankruptcy filing along with domestic violence cases.
