Have you been unable to make recent utility payments? Have you missed your last few mortgage or rent payments? If you find yourself in this position, you know that you need to alter your financial approach at once.
While many people continue down this path, hoping to eventually make things right, others come to find that they need to take immediate action.
If you've missed payments in the recent past and realize that you need to get back on track, it's time to learn more about bankruptcy. More specifically, you should focus on the automatic stay and what it can do for you.
The moment you file for bankruptcy is the moment an automatic stay goes into place. In short, this provides you with protection against bill collectors and creditors.
This doesn't mean that they can never contact you again in the future. It does mean that you now have enough time to consider your options without creditors and collectors breathing down your neck.
If you've missed payments in the past, here are a few things that the automatic stay will do for you:
- Keep your utilities active. A utility company may threaten to shut off your service if you're behind on your account. However, with an automatic stay in place, the company has to wait a minimum of 20 days in order to take action.
- Stop foreclosure. If you slip behind on your mortgage, you should expect your lender to begin the foreclosure process at some point. But once again, the automatic stay can work in your favor. This will temporarily stop the process, giving you time to figure out a way to stay in your home.
- Stop eviction. If your landlord is threatening you with eviction due to missed payments, the automatic stay can buy you some time.
In a perfect world, you'll never get behind on your monthly obligations. In the real world, things can and will happen that pose financial challenges.
If you've missed payments in the past and are worried about what the future will bring, it's time to learn more about Chapter 7 and Chapter 13 bankruptcy. With the help of the automatic stay, you can immediately improve your situation as you devise a plan for getting back on track.