The Automatic Stay in Bankruptcy

stop-ButtonIt may be hard to admit that it’s time for bankruptcy. Most people can scrape by with minimum or late payments, but then comes the tipping point. By the time clients call me, they are usually dealing with calls and letters from creditors and are unsure what to do next. Some companies will modify payment amounts or due dates, but others have a very fast process for sending late or missed payments to collection agencies. The calls from collection agencies can sometimes be aggressive and frequent, which can be scary for clients. Some clients are surprised by a knock at the door and are then served with court documents letting them know their creditors are suing them for collection of their debt.

Don’t Feel Overwhelmed

If these situations sound familiar, I’m here to help. One of the great benefits of filing bankruptcy is the Automatic Stay. This means that the moment you file bankruptcy, creditors can no longer attempt to collect the money you owe. Once we file your paperwork, you will be assigned a case number that you can pass along to your creditors. With the case number and my contact information, you will no longer need to speak to bill collectors. What a relief!

The Automatic Stay applies to the debt you are including in bankruptcy such as utility bills, medical bills, credit cards, as well as secured debt that you do not want to include in the bankruptcy like auto loans and mortgages.

Are There Exceptions?

One important thing to know is that a creditor for secured loans can ask for relief from the Automatic Stay. The court may allow a creditor to continue collection attempts on secured debt if you are behind on payments. This means if you are not up to date on your car or mortgage payments, the bank may continue with repossession or foreclosure. Additionally, if the creditor feels their property, such as the car or home, is not properly protected, the bank could grant relief. If your car is not insured, the bank could go ahead with repossession.

The Automatic Stay does not apply to debt such as alimony, child support, or taxes. These bills must continue to be paid, however, they may be modified during your bankruptcy. The Automatic Stay will not stop court proceedings to determine or change child visitation, custody, or paternity.

I’m Here To Help

Although bankruptcy may not be what you want to do, there are many circumstances that make it your best option, and the Automatic Stay is one of the greatest benefits of filing. Once the calls and letters from creditors stop, you can focus not only on preparing for and resolving your bankruptcy, but also on moving forward and putting your financial difficulties behind you. If the collection attempts are getting to be too much to handle, don’t suffer alone. Give me a call so we can get things moving and get you the protection you need.

Contact Me For More Information

If you’re considering bankruptcy but are struggling to come up with the money to file, give me a call so we can discuss payment options. I’m here to get your case filed quickly and seamlessly so you can stop worrying and start living debt free.

We are here to help as you strive toward financial freedom. We’re experienced and have up-to-date knowledge about all the aspects of bankruptcy law. Don’t feel like you have to navigate the system alone. We’re here to take your call!  Contact us today to get started. Click here if you need a Eugene bankruptcy attorney , or check here for our other Oregon and Washington locations.