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Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

How Does The Automatic Stay Help Those Filing for Bankruptcy?

Posted By Allmand Law Firm, PLLC || 6-Sep-2016

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.

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