When you file for bankruptcy an automatic stay helps protect you from creditors. This is a court-ordered injunction. It prevents creditors from seeking legal action against you after filing for bankruptcy. Without the filing, creditors can contact you by mail, phone, text, and so on. Consequently, you may be overwhelmed if you are having difficulty repaying your debts.
What happens after filing for bankruptcy?
After filing, your attorney and the court will contact the creditors listed in your bankruptcy paperwork to explain that you have filed for bankruptcy. As a result, the creditors must stop all communication with you. Now, they will send any inquiries to your attorney instead. This can be particularly helpful if you have a pending foreclosure, wage garnishment, repossession, or eviction. However, there are certain circumstances where an automatic stay can be delayed or lifted by the court. But, the court will not lift an automatic stay without reviewing the case thoroughly.
How long will an automatic stay last?
The automatic stay continues throughout your bankruptcy. It will end when your case is discharged, dismissed, or your repayment plan is completed. Once the automatic stay ends, creditors can contact you for any debts that were not discharged in the bankruptcy.
Are you in need relief from creditor contact? Are you overwhelmed by debt? Schedule a free consultation today. Let us review your situation to see what options will work best for you.