One of the greatest benefits of bankruptcy under any chapter is the fact that it puts an immediate stop to most creditor collections from the moment the case is filed. While there are a few limited exceptions to this feature of bankruptcy, nearly all of your creditors will have to stop whatever they are doing to go after you and your assets.
To learn how relief from creditor harassment can benefit you under both Chapter 7 and Chapter 13, contact Scott Wantland at Wantland Law, PLLC in Shepherdsville, KY.
Call 502-957-0000 to Learn About the Automatic Stay of Bankruptcy
Bankruptcy attorneys refer to the law that stops creditor collections as the automatic stay. Every new bankruptcy filing operates as a restraining order against anyone you owe money to, once again with a few exceptions. While many people think the Fair Debt Collection Practices Act is their ticket to escaping creditor harassment, bankruptcy filing is generally a much more effective way to combat creditors.
v Collection letters and phone calls
v Lawsuits, both those already filed and those in the works
v Mortgage foreclosure
v Repossession of cars, trucks or other assets securing a debt
v Wage garnishment
v Asset seizure
v Eviction proceedings for unpaid rent that were initiated after you had already filed for bankruptcy
The main exceptions to the automatic stay involve criminal cases, child support and alimony obligations. You’ll be protected from just about any other debt collection effort.
In some situations, a creditor can ask the bankruptcy court for permission to begin or continue collection activities. In most cases, we can see those situations coming and take steps to resolve the problem before the creditor seeks relief from the automatic stay in bankruptcy court.
Putting a stop to collections and giving people breathing room is one of bankruptcy’s greatest advantages for people under serious financial pressure. To learn how to put the automatic stay of bankruptcy to work for you, contact Wantland Law, PLLC for a free consultation at our Shepherdsville office.