There may come a time when you realize that filing for bankruptcy is the best way to improve your financial situation. This isn't an easy decision to make, but it's one that can most definitely work in your favor.
One of the first things you need to think about is the automatic stay. In short, this will kick in once you file your bankruptcy paperwork. From there, you will receive protection from all bill collectors and creditors.
The automatic stay also stops any new lawsuits from being filed against you, such as those from a creditor.
Here are some of the many things the automatic stay will do for you:
- Keep your utilities on. If you slip behind on a utility bill, the company may threaten to disconnect your service. The automatic stay prevents them from doing this for a minimum of 20 days.
- Stop foreclosure dead in its tracks. If you have worries about losing your home to foreclosure, the automatic stay can step in and buy you some time.
- Stopping eviction. Just the same as foreclosure, the automatic stay can stop your landlord from evicting you. Once again, you may buy yourself enough time to figure things out.
- Put an end to wage garnishment. It can be extremely frustrating to lose money from each paycheck to wage garnishment. Once the automatic stay goes into effect, you no longer have to worry about this.
As the bankruptcy process moves forward, you will begin to better understand what the future will bring.
You should take full advantage of the automatic stay, as this gives you enough time to figure things out as the bankruptcy process unfolds.
You shouldn't file for bankruptcy solely for the protection of the automatic stay, but you should let this work in your favor.
When everything is said and done, you should be in a better spot with regard to your finances. This will allow you to move forward with your life, all without your financial problems bogging you down.