It's surprising how quickly things can go from bad to worse when it comes to money matters. At some point, you may be unable to go a single hour without phone calls, texts, and emails from the people you owe money to. That, along with other problems, is usually what pushes consumers into bankruptcy court. Once you file, an almost magical thing happens — and you don't have to wait for your bankruptcy case to be complete to experience it. Read on to find out more about the immediate relief an automatic stay can bring you.
What the Stay Can Do
The automatic stay is a legal action that sends a message to certain parties that they must stop certain actions immediately, or else. Stays are common with legal actions, but the automatic stay has a surprising number of powers and earns instant respect from your creditors. The filing in federal court is communicated to anyone listed on your creditor matrix. This lets them know that you are now under bankruptcy protection. The stay prevents creditors from contacting you in any manner. They cannot even send you a billing statement or invoice while you are in bankruptcy. The stay follows you until your bankruptcy is over and beyond. Unless you reaffirm a debt, you will never hear from those creditors again. If you do, be sure to let your bankruptcy lawyer know about it. You are protected not just from being contacted by creditors, but in many other ways — all of them sure to make your life easier once you file.
Wage Garnishments? Say Goodbye
When you get behind on bills, creditors can take you to court and garnish your wages. Before you get your usual paycheck, the creditor gets paid from your hard-earned wages. The automatic stay stops that wage garnishment. If some funds are accidentally withheld after the date of your filing, the money must be returned to you. Now, you have more money for food, utilities, and other necessary items.
Place a Hold on Possessive Actions
If you are being threatened with foreclosures or repossessions, the automatic stay also stops those actions. However, these are secured debts, meaning the debt is secured by the property. The stay provides the debtor with some breathing room for a month or so, but the stay will eventually be lifted and punitive actions could soon follow. If you want to keep your home and car, speak to your bankruptcy lawyer about making arrangements and affirming debts so that you don't lose them once the stay is lifted.
Speak to your bankruptcy attorney to find out more.
Share10 August 2021
My name is Noni. When I was in college, I was hit by a car while crossing the street. My life was never in danger, but I did break a few bones and had a lot of huge medical bills. I was hoping I wouldn't have to get involved with an attorney, but unfortunately, it came down to that. I used a family friend who is an accident attorney to get some compensation. A few years later, I was hit while riding my bike and had to go through the same process. I suppose I'm lucky to be alive. And it's thanks to accident attorneys that I have been able to put my life back together. I started this blog as a way to let others know just how much lawyers can help you in certain situations.