When you get in debt, you become a slave, says Andrew Jackson. They are similar to children because the smaller they are, the more noise they make. A noise your creditor can hear miles away. You cannot run away from your creditors your whole life and glance over your shoulder every time you head out of your house. Stop the rollercoaster ride and lead a life debt-free by learning more about how bankruptcy stops creditor harassment.
Knowledge is power, so they say. Learn the types of bankruptcy and how your case can be resolved if you file one. Start by seeking the guidance and services of an experienced bankruptcy attorney. If you qualify for Chapter 7 bankruptcy, this type of bankruptcy will allow you to clear your debts, and you may keep some of your hard-earned investments, such as property, through exemptions.
Chapter 13 provides you with a repayment plan that may last for months up to five years, which involves monthly payments. Cases falling under this type of bankruptcy can catch up on delayed payments, such as child support. This can also prevent people from losing their homes (foreclosure).
Unlike Chapter 7 and Chapter 13, Chapter 11 is a kind of bankruptcy solely for the people who own businesses. This allows them to restructure and reorganize their debts while also permitting them to continue their business operations. However, modifications may occur involving the payment terms between the debtor and the creditors.
The Power of Automatic Stay
What is an automatic stay in bankruptcy? Automatic stay is one significant protection you can receive by filing for bankruptcy (11 U.S.C Sec. 362). It is a statutory injunction that stops creditors from any debt collection activities, which means an end to nonstop harassment and finally, a temporary relief and peace of mind.
The automatic stay is designed to prevent any debt collection efforts and stop creditor harassment. Here are more benefits you should know:
- Legal Actions or Lawsuits
Automatic stay stops any proceedings of any pending lawsuits against you. This covers actions such as wage garnishments and bank account levies. - Foreclosure Proceedings
Unpaid debts may result in losing your home. But with an automatic stay, you get a valuable amount of time to plan for an alternative method or negotiate during bankruptcy proceedings. - Eviction
Automatic stay also stops eviction proceedings. However, the protection or benefit of the automatic stay has limits, specifically if your landlord intervenes. - Utility Disconnections
The automatic stay prevents utility disconnections for 20-day unpaid utility bills and can provide temporary relief as you plan and organize your finances. - Exemptions to the Automatic Stay
Not everyone will be qualified for the automatic stay. The automatic stay also does not apply to all kinds of debts. So, it is best to consult a bankruptcy lawyer to learn more about its scope and limitations. Some exemptions include certain family support actions involving paternity, child support, and alimony.
Contact your trusted and experienced bankruptcy attorney, Richard Hackerman, at 410-243-8800, to learn more about what an automatic stay is in bankruptcy and its benefits, limitations, and how this can help you stop creditor harassment and provide financial relief.
