Default Judgment: The Automatic Stay Could Help at the Last Minute

by Gregory Mark Fitzgerald on Nov. 07, 2018

Bankruptcy & Debt Credit & Debt Bankruptcy & Debt  Collection Bankruptcy & Debt  Bankruptcy 

Summary: The automatic stay is an extremely helpful injunction, and your creditors will be alerted to your bankruptcy filing; however, even if they are not, the automatic stay still prohibits them from collecting on any debts.

"In the case that nothing is done, and creditors have been suddenly imbued with a lot more power thanks to the judgment, you may find yourself panicking about losing up to 25 percent of your disposable income each month due to garnishments. You may wonder how to handle the potential seizure of property or funds from checking accounts. Speak with your attorney about your options, including possibly filing for bankruptcy. Not only could you see all your unsecured debts discharged within three to six months, but all collections activity would be halted immediately through the automatic stay."

Read the entire article on the official Fitzgerald & Campbell, APLC blog.

Legal Articles Additional Disclaimer is not a law firm and does not offer legal advice. Content posted on is the sole responsibility of the person from whom such content originated and is not reviewed or commented on by The application of law to any set of facts is a highly specialized skill, practiced by lawyers and often dependent on jurisdiction. Content on the site of a legal nature may or may not be accurate for a particular state or jurisdiction and may largely depend on specific circumstances surrounding individual cases, which may or may not be consistent with your circumstances or may no longer be up-to-date to the extent that laws have changed since posting. Legal articles therefore are for review as general research and for use in helping to gauge a lawyer's expertise on a matter. If you are seeking specific legal advice, recommends that you contact a lawyer to review your specific issues. See's full Terms of Use for more information.