What Is Difference In Automatic Stay And Discharge Order?
What Is Difference In Automatic Stay And Discharge Order?
When you file a bankruptcy, the judge will automatically enter what is known as the automatic stay order that will last until the case is over. When your bankruptcy case is over, the normally you will receive a discharge order.
So what do these orders do and what is the difference between them?
The automatic stay order is to maintain the status quo.
It is to make sure that none of your creditors are debt collectors take any action against you.
This to give the court time to look at all of your assets and your debts or liabilities and then decide what needs to be done in your case.
It means that no creditor or debt collector can sue you.
It means that no creditor or debt collector can repossess your car. Or go forward with a foreclosure.
Also, it will remind you of the game that we often played as children called freeze tag. It is as if everything has been frozen and no one can take any action against you.
On the other hand, the discharge order is what happens at the successful end of your case — not the beginning of your case which is when the automatic stay kicks in.
The discharge order tells your creditors — and any debt collectors — that the debts are gone.
Never to be collected against you again.
Ever.
So this means if a creditor calls or writes you about a discharged debt, they run the risk of violating the law. If they credit report a balance owed then this violates the law.
Both of these orders are important.
The automatic stay protects you from the moment you file bankruptcy, until you are discharged (unless the order is modified).
The discharge order protects you from the moment you are discharged.
Both of these orders are needed to give you the “fresh start” bankruptcy is to provide.
If any creditor or debt collector violates either one of these laws, you should look into your option to sue.
Give us a call if you live in Alabama, call us at 205-879-2447.
If you currently have a bankruptcy attorney, only call us if your lawyer gives you permission to talk to us.
Otherwise we will not be able to speak with you since you are represented.
You can also fill out our online contact form and let us know what is happening and we will get right back with you.
They have violated the order and wanting to foreclosure I really need your help
Betty — do you live in Alabama? If so we can help you. But if you are in Georgia or another state you’ll need a lawyer licensed in your state.
Thanks!
John Watts
ps — if you live in Alabama call Randi in my office at 205-879-2447.