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The automatic stay: one of the benefits of bankruptcy

On Behalf of | May 16, 2022 | Bankruptcy

It is not easy to make the choice to file for bankruptcy. One of the reasons you may choose to seek the protection provided by this legal option is because you need a way out of your current financial situation. You may be overwhelmed by debt, behind on your payments and experiencing constant contact from creditors, but bankruptcy provides you the opportunity to seek a better financial future.

In addition to allowing you the chance to deal with your debt in an effective and productive manner, bankruptcy also brings the benefit of the automatic stay. Upon filing for bankruptcy, this will go into effect, halting all contact from creditors and debt collectors. This means the phones calls and text messages will stop, as well as more aggressive means of debt collection such as wage garnishment.

The protection you need

Overwhelming debt is stressful, and the stress you may feel when you receive notice of wage garnishment or other steps a creditor is taking can make a difficult situation worse. Your choice to file for bankruptcy will allow you to confront your debt in an organized manner, whether that is through liquidation and discharge, or reorganization and repayment. Regardless of the type of bankruptcy for which you filed, the automatic stay will halt lawsuits, collections and judgements from the following

  • Collection agencies
  • Government entities
  • Creditors
  • Someone else seeking payment from you

The automatic stay goes into effect immediately upon your filing for bankruptcy protection, giving you the ability to follow the terms of your bankruptcy plan without hinderance. Wage garnishment, threats of foreclosure on your Georgia home, eviction processes and repossession efforts will stop. If a debt collector or creditor violates the automatic stay, it is a violation of bankruptcy law. The automatic stay will likely remain in place until the bankruptcy process is complete.

Other benefits of bankruptcy

You may benefit from understanding how bankruptcy could be the most practical and useful way for you to deal with your debt problem once and for all. If you are unsure of whether this is the best way forward for you, it may help to seek an assessment of your case and explanation of the many benefits that bankruptcy can provide. In addition to providing you a way to deal with your debt, it can ease the strain you feel due to debt collection efforts and harassment from creditors.