A Tradition Of Caring And Compassionate Representation For Staten Islanders

Attorneys Of Corash & Hollender, P.C.

Benefitting from the automatic stay through bankruptcy

On Behalf of | Apr 30, 2018 | Bankruptcy | 0 comments

Bankruptcy may not be your first choice, but it could be an optimal way for you to take back control of your life. If you are dealing with overwhelming debt, you understand that your financial situation can have a negative impact on multiple areas of your life.

New York readers know debt can lead to many negative consequences, and one of them is the harassment and constant contact from debt collectors. These people may be calling you at home, sending you letters and even taking physical steps to repossess your property or ensure they get payment. This is extremely stressful, especially when you cannot pay, but there are certain ways you can make it stop.

What is the automatic stay and what can it do for me?

The automatic stay happens immediately upon filing for bankruptcy. This will completely halt all further action from creditors, meaning they can no longer call you, contact you or take any action against you. The automatic stay will do the following for you:

  • It will prevent the disconnection of your utilities for late payments.
  • It will halt any foreclosure efforts against your home.
  • It will prevent you from facing an eviction.
  • It can stop the garnishment of your wages.
  • It can prevent the government from stopping your public benefits.

Bankruptcy offers you an organized and effective way to deal with debt and protect your financial future. The automatic stay will give you the opportunity to follow the terms of your bankruptcy plan without stress and harassment from creditors. However, there are limits to what the automatic stay can do. Its limits include:

  • It cannot protect you against the repercussions of unpaid child support.
  • It cannot stop any criminal proceedings that may be against you.
  • It cannot stop an audit against you.

As you consider the benefits of filing for bankruptcy, you may find it beneficial to understand what the automatic stay could mean for your individual situation.

Seeking a better financial future

If you are considering bankruptcy, it is because you feel overwhelmed by debt and have no way to deal with your financial situation without help and support. While it may not be your first choice, it could offer you a way to have a better and stronger financial future.

Most people find it beneficial to seek a complete evaluation of their case before they make the decision to file for bankruptcy. This can help you understand the benefits and the implications of this choice.