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Janet K. Hong and Derek Hong are the founding partners of Hong Law, PLC

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Home  >  FAQs  >  What is an automatic stay?

What is an automatic stay?

After you file for bankruptcy, the bankruptcy court will issue an automatic stay on most, if not all, of your debts. This forces creditors and collection agencies to immediately stop all effort to contact or collect money from you by way of letters or phone calls. In other cases, an automatic stay may also be able to stop a foreclosure. This provides a major relief for many people who were feeling pressured and harassed by creditors.

Going through bankruptcy can be overwhelming, but is almost always beneficial for a person in the long run. To learn more about the automatic stay and how it helps you, contact a Cedar Rapids bankruptcy lawyer of Hong Law, PLC, today at (319) 294-5853.

Iowa City and Coralville Office Location: 845 Quarry Rd #130
Coralville, IA 52241
Phone: (319) 354-1804
Map to our Coralville Office