What you need to know about the Bankruptcy automatic stay
Anyone who has been burdened with excessive debt knows the stress involved when creditors contact you day after day demanding payment. Few things can have as devastating an impact on your health and family life. Is there any way out of this mess?
Bankruptcy is certainly one option that should not be overlooked if you're truly drowning in debt and are struggling to pay your bills. In particular, there is a procedure called the automatic stay which immediately prevents your creditors from trying to collect debts.
Automatic stay is one of the most powerful and reassuring provisions of bankruptcy. Once you file for bankruptcy, there is an automatic court order which prevents companies from taking any further action against you until your case is resolved. Creditors cannot repossess your car, or begin foreclosure proceedings on your house, or try to garnish your wages through your employer.
Not only that, but your creditors and bill collectors are not even allowed to contact you until your bankruptcy case has been resolved. If any of them break this rule, you'll have to answer to a Federal bankruptcy judge and will most likely pay fines.
You should understand that the automatic stay is a temporary procedure that gives you some breathing room when dealing with bill collectors. However, you have to go through the entire process to see what the outcome of your bankruptcy case will be. At the very least, the automatic stay gives you some temporary relief while you and your bankruptcy lawyer make your case.
One thing you may be worried about is whether the new bankruptcy law makes you ineligible to file for bankruptcy. The truth is that most people who would have qualified previously are still eligible to declare bankruptcy.
Some of the new requirements include mandatory financial management courses in credit counseling. Also, depending on your annual income, you may have to go through additional hurdles to prove that you really do need bankruptcy. However, it remains a viable option for most people who would have previously qualified.
Bankruptcy remains a viable option for many people, and you should speak to a lawyer if you're considering this option. Firstly, however, you should continue reading more articles like this one to get as much information as possible before contacting your attorney.
Bankruptcy is certainly one option that should not be overlooked if you're truly drowning in debt and are struggling to pay your bills. In particular, there is a procedure called the automatic stay which immediately prevents your creditors from trying to collect debts.
Automatic stay is one of the most powerful and reassuring provisions of bankruptcy. Once you file for bankruptcy, there is an automatic court order which prevents companies from taking any further action against you until your case is resolved. Creditors cannot repossess your car, or begin foreclosure proceedings on your house, or try to garnish your wages through your employer.
Not only that, but your creditors and bill collectors are not even allowed to contact you until your bankruptcy case has been resolved. If any of them break this rule, you'll have to answer to a Federal bankruptcy judge and will most likely pay fines.
You should understand that the automatic stay is a temporary procedure that gives you some breathing room when dealing with bill collectors. However, you have to go through the entire process to see what the outcome of your bankruptcy case will be. At the very least, the automatic stay gives you some temporary relief while you and your bankruptcy lawyer make your case.
One thing you may be worried about is whether the new bankruptcy law makes you ineligible to file for bankruptcy. The truth is that most people who would have qualified previously are still eligible to declare bankruptcy.
Some of the new requirements include mandatory financial management courses in credit counseling. Also, depending on your annual income, you may have to go through additional hurdles to prove that you really do need bankruptcy. However, it remains a viable option for most people who would have previously qualified.
Bankruptcy remains a viable option for many people, and you should speak to a lawyer if you're considering this option. Firstly, however, you should continue reading more articles like this one to get as much information as possible before contacting your attorney.
About the Author:
Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about the new bankruptcy laws visit us at http://personalbankruptcyquestions.org
posted by Credit Counseling at
5:35 AM
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