If you find yourself considering bankruptcy, there are several important factors that will help you decide what to do next. For example, you want to learn more about the automatic stay.
Here are several things that the automatic stay can do for you:
-- Stop foreclosure proceedings. If your mortgage lender is attempting to foreclose on your home, the automatic stay leads to a situation in which the proceedings are temporarily stopped.
-- Stop your utilities from being disconnected. If you slip behind on your utility bills, it's not uncommon for the provider to turn off your service. The automatic stay prevents them from doing so.
-- Stopping wage garnishment. One of the top benefits of the automatic stay is if you have a garnishment against your wages, it can stop this for the time being, thus allowing you to receive your entire salary.
These are just a few of the many things that the automatic stay can do for you. Unfortunately, there are some types of debts that are not impacted, such as child support and tax bills.
The automatic stay may not be the only reason to file for bankruptcy, but it should be enough for you to at least consider what this process has to offer.
Once the automatic stay is in place, you will have more time to review your financial situation and make decisions that will lead to a better future. In other words, this buys you the time you need to regroup and formulate a plan that can help put your mind at ease.
Source: FindLaw, "The Automatic Stay: Stopping Creditors with Bankruptcy," accessed June 21, 2017