What you need to know about the Bankruptcy automatic stay
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.
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.
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.
It's important that you understand that the automatic stay is only temporary, and you'll still have to finish the bankruptcy process. Ultimately, the outcome of the bankruptcy case will determine whether you have to pay any of your bills, but at the very least you will have some temporary breathing space from those annoying bill collectors.
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.
You'll need to go to a good bankruptcy lawyer to take you through the process anyway, because the rules have become more complicated due to the new bankruptcy law. There are some additional requirements such as mandatory credit counseling and having to prove you need bankruptcy if your annual income is higher than the median for your state.
Bankruptcy remains a viable option for many people, and you should speak to a lawyer if you're considering this option. Firstly, however, you should continue reading more articles like this one to get as much information as possible before contacting your attorney.
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.
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.
It's important that you understand that the automatic stay is only temporary, and you'll still have to finish the bankruptcy process. Ultimately, the outcome of the bankruptcy case will determine whether you have to pay any of your bills, but at the very least you will have some temporary breathing space from those annoying bill collectors.
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.
You'll need to go to a good bankruptcy lawyer to take you through the process anyway, because the rules have become more complicated due to the new bankruptcy law. There are some additional requirements such as mandatory credit counseling and having to prove you need bankruptcy if your annual income is higher than the median for your state.
Bankruptcy remains a viable option for many people, and you should speak to a lawyer if you're considering this option. Firstly, however, you should continue reading more articles like this one to get as much information as possible before contacting your attorney.
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 new chapter 13 bankruptcy laws visit us at http://personalbankruptcyquestions.org
posted by Debt Consolidation Loan at
8:55 AM
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