What you need to know about the Bankruptcy automatic stay
For anyone experiencing the burden of high credit card debt (or other kinds of debt), finding a way out can be an incredibly stressful problem that can wreak havoc on your family life and health. Is there any light at the end of the tunnel?
Well, one legitimate option that you should consider if you simply can't pay all your bills is bankruptcy. The automatic stay provision in bankruptcy prevents creditors from trying to collect a debt after you have filed for bankruptcy.
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.
In fact, your creditors are not supposed to even contact you if you have initiated bankruptcy proceedings. If they do, they will have to answer to a Federal bankruptcy judge.
The automatic stay is a temporary provision that protects you from bill collectors. Whether you have to pay any of your bills in the future depends on the outcome of your bankruptcy case. But you definitely have at least a temporary reprieve from having bill collectors harassing you all the time.
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.
Some of the new requirements include mandatory financial management courses in credit counseling. Also, depending on your annual income, you may have to go through additional hurdles to prove that you really do need bankruptcy. However, it remains a viable option for most people who would have previously qualified.
The new process is more involved, but your bankruptcy lawyer can help you navigate through the maze. You'll definitely need to contact the bankruptcy lawyer for the details, and you'll want to learn as much as possible before making your first visit.
Well, one legitimate option that you should consider if you simply can't pay all your bills is bankruptcy. The automatic stay provision in bankruptcy prevents creditors from trying to collect a debt after you have filed for bankruptcy.
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.
In fact, your creditors are not supposed to even contact you if you have initiated bankruptcy proceedings. If they do, they will have to answer to a Federal bankruptcy judge.
The automatic stay is a temporary provision that protects you from bill collectors. Whether you have to pay any of your bills in the future depends on the outcome of your bankruptcy case. But you definitely have at least a temporary reprieve from having bill collectors harassing you all the time.
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.
Some of the new requirements include mandatory financial management courses in credit counseling. Also, depending on your annual income, you may have to go through additional hurdles to prove that you really do need bankruptcy. However, it remains a viable option for most people who would have previously qualified.
The new process is more involved, but your bankruptcy lawyer can help you navigate through the maze. You'll definitely need to contact the bankruptcy lawyer for the details, and you'll want to learn as much as possible before making your first visit.
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 when to declare bankruptcy visit us at http://personalbankruptcyquestions.org
posted by Credit Counseling at
2:20 AM
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