Stop Creditors In Their Tracks With Bankruptcy
Nobody likes to get phone calls from collection agencies. Despite laws intended to protect consumers from harassment, most collection agencies make you very uncomfortable when they're trying to get the money from you and will call you several times a day. If you have gotten to this point with your financial situation, it's no wonder you're considering filing bankruptcy for some relief!
Sometimes, people find themselves in such a bad financial situation that they're at risk of eviction from their apartment or foreclosing on their homes, having utilities cut off for lack of payment, or getting served with a lawsuit by a creditor who is looking for their money and tired of waiting. If there is no equity in the home to pull out and pay off the debt that has gotten out of control, many people turn to bankruptcy to alleviate the financial stress.
When you file for a bankruptcy, a magical process called "the automatic stay" occurs immediately. An automatic stay stops creditors from calling, and can even put an end (at least temporarily) to many other stressful issues related to not being able to pay your bills, also. Any lawsuits filed against you must be put to a stop, immediately. It can also provide assistance and prevention of various other common emergencies (and why many people decide to move forward and file for bankruptcy).
The Automatic Stay Prevents Many Issues
The automatic stay is a protection provided by the Bankruptcy courts, and it is designed to give consumers some more breathing room while they work to get their finances straightened out, or at least to get them more manageable. It doesn't matter whether the consumer is applying for a Chapter 7 or a Chapter 13 bankruptcy, the Automatic Stay protects them from creditor harassment and other stressors during this time period.
Disconnections from Utilities: Sometimes when you fall far enough behind on various utility bills, you might get threats to have your water, electric, telephone or gas shut off. When you file for bankruptcy, the automatic stay will ensure that the disconnection is at least prevented for 20 days. When the bankruptcy goes through, most utility debts will be discharged completely.
Eviction: If you have been unable to pay your rent and your landlord is threatening to evict you, the automatic stay may help you stay in your apartment. Keep in mind, recent changes to the bankruptcy law make it easier for landlords to evict non-payers of the rent, even if there is an automatic stay. If your landlord had already created a judgment of possession against you prior to the filing of the bankruptcy, than he or she is entitled to proceed with evictions. You also may not be protected under the automatic stay if you have damaged the landlord's property.
Foreclosure: If you have been missing your mortgage payments, after awhile, the house will get foreclosed on. An automatic stay from the filing of bankruptcy will temporarily stop the foreclosure proceedings. If you are in danger of foreclosing on your home, it's probably better to go with a Chapter 13 bankruptcy than a Chapter 7, because it will help you keep your home where as a Chapter 7 will require you sell the home back to the bank, in most instances.
Related Tags: debt, bankruptcy, debt relief, get out of debt, bankruptcy help, debt-free life, living debt-free
Destroy Debt offers tools and advice advice to help you reduce debt. Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are