Is Notice Required For the Automatic Stay?

[The Law office of Malik W. Ahmad provides free bankruptcy consultation to all of our clients at this time. An immediate request can be made by calling (702) 270-9100. Most of the time, same day appointments can be made with our law office.]

This question has come up many times. A stay is effective without notice. However, it is important that the creditors should know of the stay. If you give proper notice, it may save you the expense of getting the court to set aside collection actions which can be taken without such knowledge of the stay. All creditors are entitled to notice of the order for relief. Usually, the creditors receive this notice via the official form setting the time for the 341 meeting. The 341 notice also fixes the time for filing claims, notifies creditors who will as trustee and notifies creditors of an automatic stay. Again, a notice may not be needed and the creditors cannot immunize themselves of not having received a notice but a notice should nevertheless be made to all creditors or at least the most important creditors on their current addresses.

Application of the stay is not limited to judicial actions but also applies to administrative actions. The stay prevents any attempt to repossess collateral or otherwise gain possession of property.

The automatic stay also equally applies to co-debtors who had not even filed bankruptcy.


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