What you need to know about the Bankruptcy automatic stay
For anyone experiencing the burden of high credit card debt (or other kinds of debt), finding a way out can be an incredibly stressful problem that can wreak havoc on your family life and health. Is there any light at the end of the tunnel?
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.
As soon as you file for bankruptcy, the bankruptcy court implements the automatic stay which prevents companies from taking any action until your case has been heard by the bankruptcy judge or trustee. This is a powerful provision which can relieve a lot of stress for you and your family, and it can even prevent creditors from performing foreclosure or repossessions.
In fact, your creditors are not supposed to even contact you if you have initiated bankruptcy proceedings. If they do, they will have to answer to a Federal bankruptcy judge.
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.
It's true that the process is more involved now with the new bankruptcy code, but it is still a viable option for many Americans to consider. Your best bet is to learn as much as possible about bankruptcy from more articles like this one and then speak to a bankruptcy lawyer.
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.
As soon as you file for bankruptcy, the bankruptcy court implements the automatic stay which prevents companies from taking any action until your case has been heard by the bankruptcy judge or trustee. This is a powerful provision which can relieve a lot of stress for you and your family, and it can even prevent creditors from performing foreclosure or repossessions.
In fact, your creditors are not supposed to even contact you if you have initiated bankruptcy proceedings. If they do, they will have to answer to a Federal bankruptcy judge.
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.
It's true that the process is more involved now with the new bankruptcy code, but it is still a viable option for many Americans to consider. Your best bet is to learn as much as possible about bankruptcy from more articles like this one and then speak to a bankruptcy lawyer.
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 the answers to common bankruptcy questions visit us at http://personalbankruptcyquestions.org
posted by Debt Consolidation Loan at
1:30 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home