Filing for bankruptcy may seem daunting. However, one of the most helpful
tools for those filing bankruptcy is
automatic stay. This United States bankruptcy law does not allow creditors or debt collectors
to take legal action or file lawsuits against debtors.
This can be useful for those people at risk for eviction or foreclosure,
at risk for losing utilities, welfare, or unemployment benefits. In short,
automatic stay can benefit you in a time of economic and financial crisis.
Many people worry that if they file for bankruptcy, creditors will antagonize
them to take assets or money they may have, regardless of whether or not
it can affect their living conditions. This can be frightening, especially
fi you have a spouse or child who depends on you for financial security.
For this reason, automatic stay is designed to help those in a time of need.
Below is a list of ways the automatic stay law can help when filing for
It can stop utility disconnections.
If you are incapable of paying your utility bill, companies may threaten
to disconnect necessary resources such as water, electricity, and gas.
However, the automatic stay law can postpone these disconnections for
at least of 20 days.
It can stop or pause foreclosure.
Oftentimes, automatic stay can postpone proceedings if your home mortgage
is at risk of foreclosure. If a person would like to keep their house
during the bankruptcy process, that person should consider filing Chapter
It can stop the eviction process.
Automatic stay can stop property owners from evicting tenants in short
amounts of time. However, property owners can find loopholes to evict
you and your family earlier. While the automatic stay can postpone the
eviction for a few days or a couple weeks, a person facing financial crisis
should speak with an experienced bankruptcy attorney immediately.
It can stop the collection of public benefits overpayments.
In most cases, if you received over payments due to your public benefits,
an agency is entitled to collect these overpayments from your checks.
The automatic stay law may be able to prevent these collections to help
you and your family.
It can stop wage garnishments.
When filing for bankruptcy, the automatic stay law will not allow any
collection agencies to take any part of your salary. This may exclude
wages used to satisfy court judgments.
Wadhwani & Shanfeld Can Help
Bankruptcy can be a great resource. In fact, bankruptcy can be the best
option to help you get on your feet. If you are facing a serious financial
crisis, it is important to speak with a skilled bankruptcy lawyer to ensure
your situation is examined detail by detail. With sources like the automatic
stay, bankruptcy can be an accommodating way to maintain a comfortable
situation for your family.
If you have encountered a difficult financial situation and are considering
bankruptcy, call our Southern California bankruptcy lawyers at
Wadhwani & Shanfeld. We can explore your case and discuss any options that may help you.