What is an automatic stay?

When a person is facing a difficult financial situation, it can quickly become overwhelming, especially if there is seemingly no way that they can repay their debts. When money is an issue, many people aren’t sure of whether they are going to be able to keep up with their mortgage payments and fear that they will lose their home. If financial problems continue to escalate, the person may want to consider filing for bankruptcy.

Bankruptcy can be a scary thought and many people view it as the last resort. However, it may be better to look at bankruptcy as a fresh start than the end of the road. Just because you file for bankruptcy, you don’t necessarily have to lose your home, your car, or many of your other belongings. It all depends on the severity of your financial situation and what type of bankruptcy you file. One common issue a person facing serious debt experiences is receiving a lot of harassing calls from creditors about the missed payments on their home. Once you file for bankruptcy, you will receive an automatic stay. An automatic stay simply means that debt collectors, lenders, and creditors are not permitted to contact you in regards to your missed payments. In addition, an automatic stay will stop the foreclosure process on your home. Once an automatic stay goes into effect, these lenders may not bring a lawsuit, garnish your wages, or even so much as call you to try and collect the debt. When you file for bankruptcy, your attorney or someone in your attorney’s office will inform the creditors that you have filed for bankruptcy and the stay will be initiated.

If you have concerns about being harassed by creditors or are overwhelmed by your debt, contact an experienced bankruptcy attorney at The Radol Law Firm who can provide you with assistance.