When you have debts that are past due, two of the most harrowing things that you might do during the day is check your mail and answer the phone. This is because debt collectors might call you or send you letters. Swimming in debt isn’t an easy situation to be in, so you might be ready to find out what you can do about this.
One option that you have is to file for bankruptcy. This comes with some specific benefits that you might find delightful. The automatic stay is one that you might find particularly interesting.
When you file for bankruptcy, the court orders an automatic stay, which prevents creditors from contacting you to collect the debt. There are several other benefits to the automatic stay that you might find interesting; however, as you review these, remember that they are only temporary measures.
An automatic stay can stop foreclosure proceedings temporarily. If the automatic stay is lifted, the foreclosure process can start up again right away.
The automatic stay can also stop utility companies from disconnecting the services. This can stop the disconnection orders for up to 20 days, so you will need to make other plans to get the account paid.
Evictions and wage garnishments might also be stopped as long as the automatic stay is in place. These will begin again when the stay is lifted if you don’t make other arrangements to get the accounts current.
You shouldn’t file for bankruptcy based only on the desire to reap the benefits of an automatic stay. Instead, you should consider all of the ways the bankruptcy would impact your finances and your life before you make a decision.
Source: FindLaw, “The Automatic Stay: Stopping Creditors with Bankruptcy,” accessed Sep. 07, 2017