What is the automatic stay?

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What is the automatic stay?

This is an injunction that goes into effect automatically upon the filing of a bankruptcy case in Colorado. It strictly prohibits the commencement or continuation of any acts to collect on a debt that arose prior to filing the bankruptcy. Think of the automatic stay as a court ordered time out against your creditors. This includes enforcement of judgments, creating or perfecting liens, and many other actions under Colorado Law. (It does not apply to collecting alimony maintenance and support). If any creditor violates this Colorado Bankruptcy Court Ordered, they could be held in contempt and then your creditors could be liable to pay you sanctions.


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