How the Bankruptcy automatic stay can help you
Anyone who has been burdened with excessive debt knows the stress involved when creditors contact you day after day demanding payment. Few things can have as devastating an impact on your health and family life. Is there any way out of this mess?
Bankruptcy is certainly one option that should not be overlooked if you're truly drowning in debt and are struggling to pay your bills. In particular, there is a procedure called the automatic stay which immediately prevents your creditors from trying to collect debts.
Automatic stay gives you some temporary relief by preventing creditors from beginning foreclosure proceedings or trying to repossess your assets. The bankruptcy court actually prevents any of this from taking place.
Not only that, but your creditors and bill collectors are not even allowed to contact you until your bankruptcy case has been resolved. If any of them break this rule, you'll have to answer to a Federal bankruptcy judge and will most likely pay fines.
The automatic stay is a temporary provision that protects you from bill collectors. Whether you have to pay any of your bills in the future depends on the outcome of your bankruptcy case. But you definitely have at least a temporary reprieve from having bill collectors harassing you all the time.
One thing you may be worried about is whether the new bankruptcy law makes you ineligible to file for bankruptcy. The truth is that most people who would have qualified previously are still eligible to declare bankruptcy.
Your bankruptcy lawyer can explain some of the specifics such as having to undergo credit counseling and attend financial management classes as a requirement for bankruptcy. When it's all said and done, bankruptcy is still an option for many people to consider in order to achieve a fresh financial start.
The new process is more involved, but your bankruptcy lawyer can help you navigate through the maze. You'll definitely need to contact the bankruptcy lawyer for the details, and you'll want to learn as much as possible before making your first visit.
Bankruptcy is certainly one option that should not be overlooked if you're truly drowning in debt and are struggling to pay your bills. In particular, there is a procedure called the automatic stay which immediately prevents your creditors from trying to collect debts.
Automatic stay gives you some temporary relief by preventing creditors from beginning foreclosure proceedings or trying to repossess your assets. The bankruptcy court actually prevents any of this from taking place.
Not only that, but your creditors and bill collectors are not even allowed to contact you until your bankruptcy case has been resolved. If any of them break this rule, you'll have to answer to a Federal bankruptcy judge and will most likely pay fines.
The automatic stay is a temporary provision that protects you from bill collectors. Whether you have to pay any of your bills in the future depends on the outcome of your bankruptcy case. But you definitely have at least a temporary reprieve from having bill collectors harassing you all the time.
One thing you may be worried about is whether the new bankruptcy law makes you ineligible to file for bankruptcy. The truth is that most people who would have qualified previously are still eligible to declare bankruptcy.
Your bankruptcy lawyer can explain some of the specifics such as having to undergo credit counseling and attend financial management classes as a requirement for bankruptcy. When it's all said and done, bankruptcy is still an option for many people to consider in order to achieve a fresh financial start.
The new process is more involved, but your bankruptcy lawyer can help you navigate through the maze. You'll definitely need to contact the bankruptcy lawyer for the details, and you'll want to learn as much as possible before making your first visit.
About the Author:
Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn more about the different types of bankruptcy visit us at http://personalbankruptcyquestions.org
posted by Credit Counseling at
9:45 AM
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