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Bankruptcy: Understanding the automatic stay

On Behalf of | Aug 12, 2020 | Bankruptcy

Many individuals in Georgia and elsewhere may feel that one of the most intimidating aspects of struggling with debt pertains to dealing with constant collections attempts. Frequent calls and letters may do little to help an already stressful situation and those who experience similar trials may be left wondering how best to handle the situation. Those exploring the possible benefits of seeking relief through bankruptcy may find it useful to gain insight on the protections provided through the automatic stay.

The automatic stay goes into effect as soon as a person files for bankruptcy and provides protection against creditors in many scenarios. For instance, this process could help protect a person against issues such as wage garnishment and disconnection of utilities. The protection afforded through this process prevents creditors listed in the petition from attempting to contact the individual or otherwise try to collect the debt while the stay is in effect.

Experts indicate that the automatic stay could also help provide a person with protection against lawsuits filed by creditors. However, there are also certain debts for which the automatic stay might not provide the same level of protection, such as those pertaining to child support payments or certain tax liabilities. While understanding one’s options and the protections provided through the automatic stay could be essential to making informed choices, it can also be a complex topic.

Those who struggle under the weight of debt and wish to explore the benefits of seeking relief through bankruptcy could find it helpful to seek guidance on their options as soon as possible. When facing a similar scenario, a person in Georgia could benefit from speaking with an experienced attorney for insight on the best course of action with which to proceed. An attorney can evaluate a client’s financial situation and assist in developing a strategy to pursue relief from the trails of debt through the proper channels.