Thursday, January 31, 2008

What is an Automatic Stay in Bankruptcy?

Question: I lost my job and a creditor is about to get a judgment against me. I've heard that the automatic stay in bankruptcy can help me. What is that?

Answer: The automatic stay is a federal court order that prohibits of any attempts by creditors to contact you or to collect a debt. It goes into effect the moment you bankruptcy petition is filed with the court.

Creditors cannot call you, sue you, garnish your wages, repo your car, foreclose on your house, take money out of your bank account or engage in any other efforts to collect the debt. The automatic stay gives you a little "breathing room" while the court processes your bankruptcy. Some creditors like a home lender might have the right to continue foreclosure on your home if you continue to miss payments, but the lender must file an appropriate motion with the court to get permission before proceeding with the foreclosure.

When your case is over, the automatic stay is lifted. If you receive a discharge, however, that acts as a permanent court order against future efforts to collect a discharged debt.

About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

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Sunday, January 20, 2008

Attorney Carl Starrett Obtains $36,000 Judgment

The Law Offices of Carl H. Starrett II has successfully obtained a stipulated judgment against Valentina L. Atckison of Escondido, owner of Zilla Realty and Rentals-4-U, in an amount in excess of $36,000. The Court entered the judgment on December 27, 2007.

The lawsuit was filed on March 25, 2007 on behalf of Robert L. Tate. The lawsuit alleged that Ms. Atckison failed to repay Mr. Tate for a short term loan of pay. Ms. Tate made partial payment, but a substantial balance remained due on the promissory note.

Rather than face a trial, Ms. Tate stipulated to entry of a judgment of $36,340.14, which included the balance owed plus interest, legal fees and court costs.

Civil judgments in California collect interest at the rate of 10% per year. In this case, interest will accrue at the rate of $3,634.01 per year or $9.96 per day until paid. Efforts to collect the judgment will begin immediately.

About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.

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