Automatic Stay Question

[DaisysMom]

From what I have read on this forum and if I understand it correctly, after you file there is an automatic stay and any collection efforts or lawsuits get put on hold until the BK is decided.

When I met with my Attny. he gave me his price but then told me it would be $150.00 more to to file the stay with Crap1 because of the summons they served me. I thought that since the stay would be automatic, that just informing them of the filing would stop any further action. I am wondering what would cost $150.00 unless there is a special process that has to be used when a court summons is issued and has to be answered by a certain deadline? Anyone have any insight on this?

DM

[df04527]

We had a creditor lawsuit filed also and as soon as the lawyer filed the BK they also sent a letter to the court where the suit was filed. The suit was then automatically closed out with a "Suggestion of Bankruptcy". It stopped that lawsuit in it's tracks. Our attorney did not charge anything extra for this.

Hth

[despritfreya]

Yes, df's thought is on point. Sounds like the attny is going to charge you $150.00 to draft and file a Notice of Bankruptcy Filing with the State Court. Not sure if the charge is reasonable. We don't charge to prepare and file such a document - other than the filing fee the state court charges us.

Des.

[btbeme]

You can certainly file a letter with the Clerk of Court where the suit was filed. Include the case number and a copy of your BK filing. Walk the to the Clerk's office window and get them stamped and filed. A small fee is probably required. Also consider sending a certified copy to the attorney representing Cap 1.