How Does The Automatic Stay Help Those Filing for Bankruptcy?

Filing bankruptcy can be an intimidating decision. But, did you know that
there are various tools that can protect you during the process? In fact,
one of the most beneficial tools for those filing bankruptcy is the
automatic stay. The automatic stay is a part of all bankruptcy cases, and it stops all
collection actions you may be facing from creditors or debt collection agencies.

The automatic stay can be a powerful instruments for protecting them against
a number of financial burdens. If you are facing eviction, repoession
or foreclosure, losing utilities or benefits, or are having issues making
child support payments, the automatic stay may benefit you and your family
in a time of financial crisis.

Below are a few ways the automatic stay law can help you when filing for
bankruptcy.

  • It may stop utility disconnections. If you have been unable to pay your utility bill, companies may threaten
    to disconnect crucial resources such as water, electricity, and gas. Thankfully,
    the automatic stay will postpone these disconnections for a minimum of 20 days.
  • It may stop
    foreclosure.
    In most cases, the automatic stay will postpone proceedings if your home
    mortgage is at risk of foreclosure. However, it is noted that a person consider
    Chapter 13 Bankruptcy if they want to keep their house during the bankruptcy process.
  • It may stop eviction. In many cases, the automatic stay will prevent property owners from evicting
    tenants in improbable amounts of time. However, property owners may be
    able to find loopholes to evict you and your family sooner. While the
    automatic stay may be able to postpone the eviction for a few days or
    weeks, it is important to speak with an experienced bankruptcy attorney
    to discuss your situation immediately.
  • May be able to stop collection of public benefits overpayments. If you received overpayments due to your public benefits, an agency would
    be entitled to collect these overpayments from your checks, typically.
    However, the automatic stay law may be able to prevent these collections.
  • May be able to stop wage garnishments. When filing for bankruptcy, the automatic stay law will disallow any collection
    agencies to take any part of your salary. However, this may exclude and
    wages that may be taken to satisfy court judgments.

When to Call Allmand Law Firm, PLLC

Bankruptcy does not always have to be an intimidating process. In fact,
for some, bankruptcy might be the best option to get out of a sticky situation.
For this reason, it is important to speak with a skilled bankruptcy attorney
in Dallas to make sure your situation is looked at detail by detail. With
tools such as the automatic stay, bankruptcy can be a helpful way to keep
you and your family living in a comfortable situation.

If you have encountered a tough financial situation and are contemplating
bankruptcy,
call our Dallas bankruptcy lawyers at Allmand Law Firm, PLLC. See how we can help you find a way out. We
will discuss any options that may be able to help you.

By | 2017-12-13T02:08:46+00:00 September 6th, 2016|After Bankruptcy, Bankruptcy, Chapter 13 Bankruptcy, Debt Collectors|Comments Off on How Does The Automatic Stay Help Those Filing for Bankruptcy?