When you decide to file for Chapter 7 bankruptcy, you are seeking financial relief through the discharge of your debts. Did you know that relief can begin as soon as you file your petition with the bankruptcy court? When you file your petition, a court order will go into effect called the “automatic stay,” and here is how it can help your situation.
Upon filing for bankruptcy, the court will notify your creditors that you have requested a discharge of qualified debts. With this notice also comes notice of the automatic stay, which orders all creditors to pause all collection efforts of your debts. Collection efforts that must be halted include:
This alone can provide significant stress relief for bankruptcy filers, as you will no longer have to dodge collection calls and other attempts. Having a wage garnishment cease can be highly beneficial to your budget, as you will receive the extra income that had been withheld, which you can use to keep up on your current bills and expenses.
If you are facing possible foreclosure, the automatic stay will pause that legal action. This alone can make a huge difference. If your fear of losing your home is put on hold, and you are not making payments on other debts that will be discharged, it gives you a chance to catch up on your mortgage payments, or to negotiate a mortgage loan modification or an alternative solution with your mortgage lender to prevent foreclosure.
At Harnage Law, LLC, we know that the automatic stay is only one of the many benefits of Chapter 7 bankruptcy. Call 321.549.7886 or contact us online to speak with a Melbourne Chapter 7 bankruptcy attorney today.