Tuesday, July 26, 2016
What Is The Automatic Stay And How Does It Help Me When I File Bankruptcy?
Are you being called by creditors on a regular basis? Is your mailbox overflowing with past due notices? Do you go about your day trying to avoid being served with a collection lawsuit? If these are some of the things that you have to face on a daily basis you might be wondering if there is anything you can do to put a stop to the acts. The answer is yes, and it includes filing for the protections offered by the bankruptcy laws. One of the most beneficial aspects of filing a bankruptcy case is a legal mechanism referred to as the automatic stay.
The way the automatic stay works when you file for bankruptcy is like this:
● All bankruptcy cases include a list of your creditors, and each of these creditors is sent a notice that you have filed a case.
● The filing of a bankruptcy case automatically stops any collection or repossession efforts that are underway. This means that your lenders can no longer call you or file a lawsuit to collect money or to repossess your property.
● If you receive a call or letter after you file bankruptcy you should advise the creditor you have filed and provide the case number for their reference. This gives the lender an opportunity to locate the filing information online prior to receiving the notice that you are now in bankruptcy through the mail. If the creditor continues to call or maintain a lawsuit, you have the ability to sue that particular lender within your bankruptcy case.
Most people that file bankruptcy find that the automatic stay is the part of their case that gives them instant relief. Think about how nice it would be to stop dodging phone calls or trying to stay out of the process server’s path so you are not served with legal papers. This is just the type of protection the automatic stay offers. The purpose behind this powerful legal theory is that when you file bankruptcy you are entitled to have some time to gather yourself so you can work out financial arrangements that fit your budget. Bankruptcy was designed to give the honest, but unfortunate debtor, a fresh start with their finances. We can help you by reviewing the facts of your case and letting you know what type of case to file and how that case will help you reach your money goals.
For more information about how the automatic stay will help you when you file bankruptcy, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.