If you have made the decision to file for bankruptcy, you are probably struggling with past-due balances and bills you cannot pay on your own. You may be getting calls from debt collectors and creditors, receiving bills in the mail every day and dealing with the threat of possibly losing your personal property. Bankruptcy could give you a fresh start and allow you to achieve a better financial future. Filing for bankruptcy brings with it the benefits of automatic stay.
What is Automatic Stay?
This means that all contact from debt collectors and creditors will come to a halt, and you will be free to follow the terms of the bankruptcy plan without additional pressure and stress. Before you file, you may want to learn more about what the automatic stay can mean for you and how choosing bankruptcy could be the right way forward.
What Happens When the Automatic Stay Goes Into Effect?
When the automatic stay goes into effect, it means that creditors and others attempting to collect on debts you owe can no longer contact you. This means they cannot call you, send you bills and make other forms of contact. In order to continue to collect from you, creditors must submit a motion for relief from automatic stay with the courts. Bankruptcy law provides this protection for you, and if a creditor violates the automatic stay, you may have grounds for legal action.
What Will the Automatic Stay Process Stop?
The automatic stay stops certain processes. It will not erase your debt or financial obligations, but in addition to halting phone calls, it can also stop the following things:
The point of this is to provide you with stability as you walk through the process of bankruptcy and meet the terms of the bankruptcy plan. There are limits to what the automatic stay can do. For example, it cannot halt the collection of back taxes or unpaid child support.
Other Bankruptcy Benefits
There are many reasons why you may want to consider bankruptcy. If you are struggling with debt, this could provide you with a way to deal with the balances that are holding you back. Many consumers find this process to be their best option for finding a better, stronger financial future.
If you are considering this step, you may want to speak with an experienced Kentucky bankruptcy attorney about the specific legal options available to you. An assessment of your case can reveal which bankruptcy options may be best for you and how you can move forward with the appropriate course of action.