What Is an Automatic Stay in Bankruptcy?
Filing for bankruptcy not only opens the path toward financial freedom, but it also puts an end to creditor harassment and foreclosure with the automatic stay process. An automatic stay stops any lawsuit filed against you by a creditor, collections agency, government entity, or any other person seeking payment. If you are about to be evicted from your home or companies have been threatening to garnish your wages, an automatic stay can help you.
What an Automatic Stay Can Do for You
An automatic stay is a powerful bankruptcy tool that has helped many people get rid of financial situations and legal issues. Below, our Los Angeles bankruptcy attorneys have put together a list of benefits an automatic stay can provide you:
Stop Foreclosure Proceedings
If the bank that holds your mortgage is starting foreclosure proceedings, an automatic stay can stop the foreclosure. This will give you time to develop a strategy to keep your home if you can’t make any payments. An experienced attorney can analyze your situation and help you determine if you qualify for Chapter 13 bankruptcy so that you can keep your home.
Stop Evictions
An automatic stay may be able to stall eviction proceedings if your landlord is trying to evict you. However, an automatic stay won’t be helpful if the landlord already has a wrongful possession judgment against you.
Stop Wage Garnishment
Wage garnishment is when a creditor files a court order to take payments for your debt directly from your income payments. Once you file for bankruptcy, the automatic stay stops all wage garnishments until the automatic stay is lifted.
Stops Your Utilities From Being Disconnected
If you are behind on your utility bill, the utility company might threaten to turn off your gas, electric, or water service. Once you file for bankruptcy, the automatic stay will prevent the utility company from turning off your service for at least 20 days.
If you are struggling to pay off your debt, contact our Los Angeles bankruptcy attorneys today at (800) 996-9932 to learn more about your debt relief options.
