When you are in over your head financially, the constant phone calls may be worse that the constant angst over how you are going to make ends meet. However, if you file for bankruptcy protection, the first thing that happens is that an “automatic stay” is put in place that will stop creditors and collection agents in their tracks.
- Stop the Madness: It won’t help you financially but it may give you peace of mind – if only temporarily. The automatic stay forces creditors to cease all efforts to collect debts owed to them by you. This means the phone calls stop. The emails stop. The threatening collection letters stop. You get some time to figure out how to proceed with your bankruptcy or another debt negotiation tactic.
- Evictions/Foreclosures: If you are at risk of being evicted from an apartment or losing your home to foreclosure, an automatic stay will temporarily stop the proceedings until the bankruptcy process is underway. This can be a much-needed sigh of relief because being forced to leave your home can feel like the straw that broke the camel’s back in terms of challenges you can’t bear to manage.
- Having Your Utilities Turned Off: No heat in the middle of winter or no water in the hot summer months can spell disaster for any family. The automatic stay can prevent utility disconnection for at least 20 days.
There are many things the automatic stay can do for someone facing bankruptcy. There are many more things a good bankruptcy lawyer can do to make sure your rights are protected and that, if possible, you are able to save your home and other assets. Talk to the skilled lawyers at Garland & Mason, L.L.C. in Manalapan, NJ. We can help.