If you are just now considering filing for bankruptcy, you probably aren’t aware of all the elements of the process. There are various tools that can protect you. In fact, one of the most beneficial tools for those filing bankruptcy is the automatic stay. The automatic stay is a part of all bankruptcy cases, and it stops all collection actions you may be facing from creditors or debt collection agencies.
The automatic stay can be a powerful instrument for protecting them against a number of financial burdens. If you are facing eviction, repossession or foreclosure, losing utilities or benefits, or are having issues making child support payments, the automatic stay may benefit you and your family in a time of financial crisis.
Below are a few ways the automatic stay law can help you when filing for bankruptcy.
- It may stop utility disconnections. If you have been unable to pay your utility bill, companies may threaten to disconnect crucial resources such as water, electricity, and gas. Thankfully, the automatic stay will postpone these disconnections for a minimum of 20 days.
- It may stop foreclosure. In most cases, the automatic stay will postpone proceedings if your home mortgage is at risk of foreclosure. However, it is noted that a person considers Chapter 13 Bankruptcy if they want to keep their house during the bankruptcy process.
- It may stop an eviction. In many cases, the automatic stay will prevent property owners from evicting tenants in improbable amounts of time. However, property owners may be able to find loopholes to evict you and your family sooner. While the automatic stay may be able to postpone the eviction for a few days or weeks, it is important to speak with an experienced bankruptcy attorney to discuss your situation immediately.
- May be able to stop wage garnishments. When filing for bankruptcy, the automatic stay law will disallow any collection agencies to take any part of your salary. However, this may exclude and wages that may be taken to satisfy court judgments.
When to Call an Attorney
Bankruptcy does not always have to be an intimidating process. In fact, for some, bankruptcy might be the best option to get out of a sticky situation. For this reason, it is important to speak with a skilled bankruptcy attorney in Dallas to make sure your situation is looked at detail by detail. With tools such as the automatic stay, bankruptcy can be a helpful way to keep you and your family living in a comfortable situation.
Carolyn Secor P.A. focuses its practice in the areas of Bankruptcy and Foreclosure Defense in Clearwater, Florida. For more information, go to our web site www.BankruptcyforTampa.com or call 727-254-1704.