How the bankruptcy automatic stay can provide relief
If you've been struggling to pay your credit card bills each month, you may be wondering if there's any way out of your financial mess. Only someone who has gone through this can understand how stressful the situation can be, and may seem like there is no way out.
Well, one option that you will want to consider is bankruptcy, even though it isn't appropriate in all situations. One of the benefits of bankruptcy is the automatic stay, which actually makes it illegal for creditors to try to collect the debt until you have finished your bankruptcy application.
As soon as you file for bankruptcy, the bankruptcy court implements the automatic stay which prevents companies from taking any action until your case has been heard by the bankruptcy judge or trustee. This is a powerful provision which can relieve a lot of stress for you and your family, and it can even prevent creditors from performing foreclosure or repossessions.
Not only that, but your creditors and bill collectors are not even allowed to contact you until your bankruptcy case has been resolved. If any of them break this rule, you'll have to answer to a Federal bankruptcy judge and will most likely pay fines.
It's important that you understand that the automatic stay is only temporary, and you'll still have to finish the bankruptcy process. Ultimately, the outcome of the bankruptcy case will determine whether you have to pay any of your bills, but at the very least you will have some temporary breathing space from those annoying bill collectors.
You may be wondering about the new bankruptcy law and whether it has become more difficult to declare bankruptcy. Well, it has become more difficult in the sense that you have to follow some additional procedures, but most people who end up filing will probably still be eligible.
You'll need to go to a good bankruptcy lawyer to take you through the process anyway, because the rules have become more complicated due to the new bankruptcy law. There are some additional requirements such as mandatory credit counseling and having to prove you need bankruptcy if your annual income is higher than the median for your state.
It's true that the process is more involved now with the new bankruptcy code, but it is still a viable option for many Americans to consider. Your best bet is to learn as much as possible about bankruptcy from more articles like this one and then speak to a bankruptcy lawyer.
Well, one option that you will want to consider is bankruptcy, even though it isn't appropriate in all situations. One of the benefits of bankruptcy is the automatic stay, which actually makes it illegal for creditors to try to collect the debt until you have finished your bankruptcy application.
As soon as you file for bankruptcy, the bankruptcy court implements the automatic stay which prevents companies from taking any action until your case has been heard by the bankruptcy judge or trustee. This is a powerful provision which can relieve a lot of stress for you and your family, and it can even prevent creditors from performing foreclosure or repossessions.
Not only that, but your creditors and bill collectors are not even allowed to contact you until your bankruptcy case has been resolved. If any of them break this rule, you'll have to answer to a Federal bankruptcy judge and will most likely pay fines.
It's important that you understand that the automatic stay is only temporary, and you'll still have to finish the bankruptcy process. Ultimately, the outcome of the bankruptcy case will determine whether you have to pay any of your bills, but at the very least you will have some temporary breathing space from those annoying bill collectors.
You may be wondering about the new bankruptcy law and whether it has become more difficult to declare bankruptcy. Well, it has become more difficult in the sense that you have to follow some additional procedures, but most people who end up filing will probably still be eligible.
You'll need to go to a good bankruptcy lawyer to take you through the process anyway, because the rules have become more complicated due to the new bankruptcy law. There are some additional requirements such as mandatory credit counseling and having to prove you need bankruptcy if your annual income is higher than the median for your state.
It's true that the process is more involved now with the new bankruptcy code, but it is still a viable option for many Americans to consider. Your best bet is to learn as much as possible about bankruptcy from more articles like this one and then speak to a bankruptcy lawyer.
About the Author:
Don't let the fear of your debt take over your life. Get the facts about bankruptcy and learn how to get control of your debt. To learn when to declare bankruptcy visit us at http://personalbankruptcyquestions.org
posted by Debt Consolidation Loan at
12:37 AM
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