At some point, you may realize that the only way to improve your financial situation is to file for bankruptcy.
Although this is a big step, it’s one that could put you on solid ground moving forward. For this reason, it’s something to learn more about.
There are many benefits of filing for bankruptcy, such as the ability to discharge some debts and start fresh in the future.
However, it’s also important to learn more about the automatic stay. Many people are unfamiliar with this, but it’s something that can do a lot in terms of putting you in a better position.
Once you file for bankruptcy, the automatic stay will go into effect. Here are some of the things it can do for you:
— Stop foreclosure proceedings. Are you concerned about losing your home to foreclosure? If so, the automatic stay will come to your rescue. With this, the foreclosure process is unable to progress. This may give you enough time to figure out the best way to save your home.
— Stop the utility company from disconnecting your service. You may have concerns about your utilities being cut off. With the automatic stay, utilities companies are not permitted to turn off your service for a minimum of 20 days.
— Stop wage garnishment. Once the automatic stay is in place, all wage garnishments come to an end for the time being. This remains true as long as the automatic stay is in place.
— Stop calls from creditors. Are you tired of receiving calls from creditors and collection agencies? The automatic stay will put an end to this.
Although these are not the only things that an automatic stay can do for you, they are definitely among the most important.
With the automatic stay in place, you’ll find yourself with a bit more breathing room. As a result, you have time to move through the bankruptcy process and learn more about how to improve your situation.
As you learn more about Chapter 7 and Chapter 13 bankruptcy, you’ll find that there are many high level benefits that can put you in a better financial position. With the help of the automatic stay, you will immediately feel more comfortable with the decision you have made. From there, it’s time to move forward with the bankruptcy process.
Source: Nov. 30, -0001