Though filing for bankruptcy may seem quite daunting, there are actually a number of ways you can benefit from taking such drastic financial action. Bankruptcy stops a number of damaging processes from being carried out, such as foreclosures and repossessions. This halting of creditor actions is known as automatic stay.
You shouldn’t let your fear of ruined credit deter you from taking the steps you need to restore your financial standing. Remember: credit can be rebuilt, even after a bankruptcy filing.
Benefits of an Automatic Stay
An automatic stay is a federal injunction that prevents creditors from taking drastic action against you in an effort to reclaim the money they are owed. Once you file for bankruptcy, an automatic stay is placed on you. It will remain in effect until a judge decides to remove the stay, you are discharged, or the property in questions is no longer part of your estate (under Chapter 7 proceedings).
Automatic stays will immediately halt all of the following creditor actions:
- Lawsuits filed against you by creditors
- Collection calls
- Wage garnishments
- Foreclosure proceedings
As you can see, receiving an automatic stay can be extremely beneficial. With these processes halted, you can focus on recovering your financial state without worrying about losing your property or dealing with potentially damaging collection calls.
If you would like to learn more about how filing for bankruptcy and receiving an automatic stay can benefit you, then Birmingham bankruptcy lawyer Paula Greenway can help. To speak with her about your situation, contact the law offices of GREENWAY BANKRUPTCY LAW, LLC today at (205) 324-4000.