When an individual is struggling to make payments on their outstanding debts, they may be overwhelmed with phone calls and letters from lenders asking about the missing payments. Of course, this can be incredibly upsetting to an individual and they may want to know how to stop this contact. When a debtor makes the decision to file for bankruptcy, an automatic stay will go into effect immediately.
An automatic stay can provide significant relief to a debtor because it will stop any contact by any creditors or lenders to the debtor. Some of the other benefits of the automatic stay include the following:
- It is immediate, meaning that simply filing for bankruptcy can bring relief
- All collection agencies are required to stop attempting to recover debts
- An automatic stay can stop also stop all repossessions and foreclosure actions, even if they are already scheduled
- Any harassment will stop from lenders and collection agencies
- Since all of the contact immediately stops, the debtor will get a little bit of breathing room that can allow them to take the time to develop a strategy with the help of a bankruptcy attorney that can help them find financial stability in the future
Though many people are wary of filing for bankruptcy, it can actually give a debtor a fresh start for their finances. If you are struggling to pay back debt, contact our firm today.
For strong legal representation from an experienced personal injury, bankruptcy, workers’ compensation, criminal defense, or family law attorney, contact Underwood & Micklin and we would be happy to schedule a consultation to discuss your matter.