While many see bankruptcy as a means for long-term financial relief, it is often overlooked as a short-term solution for many debt relief-related problems. Harassment from creditors, wage garnishments, the threat of foreclosure, and even repossession of your car can all occur as you prepare to file for bankruptcy. However, there is a legal tool called the automatic stay that basically stops creditors from harassing you and even collecting debt they are owed, it can put an end to wage garnishments, and it can stop any foreclosures and repossessions dead in their tracks. The automatic stay is one of the most viable legal tools available for debt relief. However, the automatic stay is strictly a function of bankruptcy law meaning you can only get the protection of an automatic stay after filing for bankruptcy. Contact a bankruptcy attorney to learn more about how your bankruptcy can benefit you both in the long run and the short term.
Will The Automatic Stay Protect My Assets No Matter What?
Many people with automatic stay provisions protecting them from creditors seeking debt collection can have their automatic stay overturned if a creditor files for relief from stay. This relief from stay is filed and then ruled over by a judge that ends up determining whether or not a creditor can still be owed debt even after you have filed bankruptcy. In general, most creditors seeking relief from stay oversee secured debts such as mortgages and auto loans. However, if you are able to demonstrate that your creditor won’t suffer any serious economic damage from not getting paid by you, their request for relief of stay can be denied. A bankruptcy lawyer can help defend you from relief of stay motions and ensure your bankruptcy stays on the right track.
Are Any Creditors Exempt from The Automatic Stay?
While the majority of creditors must abide by the automatic stay unless they win a relief of stay motion, other creditors such as those seeking child support, alimony payments, student loans that have defaulted, and unpaid taxes can still seek payments from you even after filing for bankruptcy.
What Should My Next Steps Be?
If you are being harassed by debt collectors or worried about being foreclosed on, bankruptcy and the automatic stay provision can provide you with immediate short-term resolutions that can help you build long-term results. Call Holland Law Office today at 970-232-3097 for a free consultation about your potential bankruptcy case and to learn more about how the automatic stay can help you and your family achieve your financial goals.