What the Automatic Stay Prevents
As soon as your bankruptcy papers are filed, the automatic stay is put into place. It also remains intact for the duration of your bankruptcy, allowing you to complete the process in peace. Here is a list of emergencies the automatic stay has the ability to temporarily prevent:
- Foreclosures: If your home is at risk of foreclosure, bankruptcy’s automatic stay can halt the foreclosure proceedings. During Chapter 13 bankruptcies this is particularly essential when you want to keep your home, as Chapter 13 is specifically designed to help you catch up on past due payments (like your mortgage) and allow you to maintain possession of your home.
- Utility shutoffs: If you have fallen behind on utility payments, the automatic stay can prevent any disconnections of your water, electric, gas, or telephone services for at least 20 days. While this isn’t always enough to warrant filing for bankruptcy, it can be useful if you have a number of other debts you are in need of getting rid of.
- Multiple wage garnishments: When creditors garnish your wages they take a specified portion directly out of your paycheck to pay off debt. Not only does the automatic stay completely halt wage garnishment, but the bankruptcy process allows you to get rid of the debt warranting the garnishment.
- Collection of overpaid public benefits: If you receive public benefits and were overpaid, the agency is typically entitled to collect on the overpayment from your future checks. However, the agency is prevented from collecting this overpayment from you while the automatic stay is in effect.
How The Turoci Bankruptcy Firm Can Help
Sustaining large amounts of debt can negatively impact both your personal and professional lives. We are committed to providing personalized and compassionate services to help you find the financial freedom you deserve.
If you would like to learn more about how bankruptcy can help you, contact us today through our website, or give us a call at 888-332-8362 to schedule a consultation today!
