Bankruptcy gives you a fresh start on life. If you have filed for Chapter 13 bankruptcy in Littleton or Greenwood Village, you’ll be making payments and catching up on your debt. If you have filed for Chapter 7 bankruptcy in Aurora, most of your debts will be discharged, and you’ll be able to get a clean financial slate. But, bankruptcy gives you peace of mind in other ways. Not only will your debt be manageable, you’ll stop receiving harassing phone calls from creditors and debt collectors. Your wages won’t be garnished. You won’t be afraid of lawsuits. You’ll be free. The reason for this freedom is the automatic stay which goes into effect when you file for bankruptcy. In this blog, we’ll discuss what an automatic stay is, and how it protects you during the bankruptcy process.
What is Automatic Stay? Protection During the Bankruptcy Process
When you file for bankruptcy an automatic stay goes into effect. This makes it illegal for people to contact you regarding your debt. Let’s look at each type of debt and how an automatic stay affects it:
- Foreclosure: If you are facing foreclosure, the automatic stay will stop the proceedings temporarily. The automatic stay doesn’t put off foreclosure indefinitely, but it will allow you room to breathe. If you want to save your home, Chapter 13 is the best option, as Chapter 7 usually doesn’t allow you to keep your home.
- Utilities: If you haven’t paid your utility bill, the electric or water company may be threatening to turn off your water and electricity. The automatic stay prevents the disconnection of these utilities for at least 20 days.
- Wage Garnishment: If your wages are being garnished (which means a portion of your paycheck is removed and sent to a collector before you even get it), the automatic stay will stop the garnishment immediately.
[pullquote align=”center” textalign=”left|center|right” width=”50%”]The automatic stay gives you relief from the harassment.[/pullquote]
An Automatic Stay Can Give you Room to Breathe
If you are worried about finances, struggling to pay bills, strained from constant harassment from debt collectors, and stressed about your wages being garnished, bankruptcy is the best option for your family. Bankruptcy will provide the ability to get caught up and get a fresh start, and the automatic stay will give you time to calm your mind and think about the future in Highlands Ranch, Englewood, and Centennial. There are a few things which an automatic stay can’t help, such as certain tax proceedings (an audit, ect.), lawsuits regarding child support, criminal proceedings, and a few other instances. If you have any questions about an automatic stay and how it can help you get a fresh start, don’t hesitate to contact me for a free consultation. I have over 25 years experience with bankruptcy law, and have a thorough understanding of the bankruptcy code.
If you are being harassed by debt collectors, an automatic stay in bankruptcy will provide relief in Greenwood Village, Parker, and Lone Tree. Call now to request your free initial consultation meeting with Barry Arrington, a trustworthy and understanding bankruptcy attorney at 303-205-7870 or submit the “Get Help Now” form to begin your journey toward financial freedom.
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