When you’re unable to pay your bills, the constant threats from debt collectors can make an already stressful time unbearable. If you decide that bankruptcy is your best way forward out of debt, the calls from bill collectors will stop immediately after an automatic stay is instituted.
What Is a Bankruptcy Automatic Stay and why does it stop debt collectors?
An automatic stay is a court order that a bankruptcy court issues as soon as a person files a petition for bankruptcy. The stay protects you from your creditors and mandates that:
- Foreclosure proceedings stop immediately
- Repossession attempts stop immediately
- Bill collectors stop calling, emailing, texting and mailing letters
- Lawsuits and wage garnishments be ended immediately
Creditors who don’t comply with the automatic stay can face serious legal action. See this Wikipedia entry for more information on Automatic Stays
The Length of a Bankruptcy Automatic Stay
Whether you file for Chapter 13 or Chapter 7 bankruptcy, an automatic stay will be put into place when you file. In the case of Chapter 13, the stay will remain in effect for 3 to 5 years while you work to repay the amount of your debt that the court has determined you are responsible for.
With a Chapter 7 bankruptcy, the stay remains in place until the bankruptcy proceedings are complete and the debt is discharged. Then, creditors are still prohibited from contacting you after the matter is settled.
How to Get a Bankruptcy Automatic Stay
In order to benefit from a bankruptcy automatic stay, you need the help of a licensed bankruptcy attorney. The attorney can discuss your case with you and prepare and file the paperwork necessary to get the stay in place. Once the bankruptcy proceedings are complete, your creditors will never be able to try and demand that you pay your own debt. You’ll be able to get a completely fresh start.
Contact Robert A Boyd for more information about bankruptcy automatic stays.
Attorney Robert A. Boyd has been helping members of the Willoughby, Ohio, community and surrounding areas through bankruptcy proceedings for more than 25 years and is here to guide you through the process. He can help you with additional information about bankruptcy automatic stays and to find out whether or not bankruptcy is the right choice for your needs. He can also help you take the first steps toward filing if that is the most appropriate course of action. Call his office at 440-918-1733 to set up a free consultation.