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Automatic Stay Provision Explained by Robert Manchel, New Jersey Bankruptcy Lawyer

The Automatic Stay provision can help New Jersey homeowners who are going into foreclosure. Filing for bankruptcy will immediately enact the Automatic Stay Provision. This provision prevents the mortgage company from proceeding with further action against your home. Not only can your mortgage NOT proceed with further action, but all other creditors will be prevented from proceeding with any action against your case. The Automatic Stay Provision is found under the bankruptcy code 11 U.S.C Section 362 of Bankruptcy code (little section A). New Jersey bankruptcy lawyer Robert Manchel explains below.

In New Jersey bankruptcy law, an automatic stay is an immediate injunction preventing actions by creditors to collect debts from a debtor who has declared bankruptcy. The injunction begins at the moment the bankruptcy petition is filed. There are certain exceptions. Secured creditors may request the bankruptcy court to overturn the automatic stay if they can show just cause (for example, if the creditor is under secured).

Filing for bankruptcy in New Jersey stops creditors from contacting you, lawsuits, wage attachment, bank account levy, utility service shutoff, foreclosure actions, auto repossession and evictions.

Once the Automatic Stay is secured, the debtor will be responsible to make monthly payments to the mortgage company and to a trustee, called the trustee payment. These monthly payments to the trustee are put in place to allow the debtor to pay off the arrears on his mortgage and become current on all payments. Once bankruptcy is filed, the mortgage company is required to continue to accept the regular monthly payments as well as the payments from the trustee to bring the debtor current.

Robert Manchel is a New Jersey, Board Certified Consumer Bankruptcy Attorney, whose practice is limited to foreclosure resolution and bankruptcy law. For more information, please contact Mr. Manchel at (856) 797-1500, 1(866) -503-5655.

ROBERT MANCHEL HANDLES CASES FROM THE FOLLOWING COUNTIES: Cumberland, Atlantic, Monmouth, Salem, Gloucester, Camden, Burlington, Hunterdon, Somerset, Middlesex, Ocean, Mercer and Philadelphia.

The Law Offices of Robert Manchel
Toll Free: 1(866)-503-5655
1 Eves Dr. Suite 111
Marlton, NJ. 08053