How Bankruptcy Can Stop Creditors from Harassing You
If you are having personal financial problems and slipping behind on some of your bills and credit cards payments you may have found yourself hitting that ignore button on your phones quite often. As soon as you are past 30 days late on any kind of payment you are going to find creditors calling and harassing you at all hours. This can be very annoying, especially when you are checking a voicemail just to find a machine saying to call back this very important number. If you are in financial hardship and stressed out all ready the last thing you need is constant harassment from creditors at all hours of the day and night.
If you are in financial trouble you may find that you have even more problems then just harassing phone calls, you may find yourself in foreclosure or your utilities being turned off, or even your car reposed. You may even find yourself being served a lawsuit by a creditor who wants their money now.
All this can be very overwhelming, especially when you are trying to get your finances in order. When it all becomes too much and you know that catching up on all the bills is not going to happen, it may be time to look into bankruptcy. Millions of Americans turn to bankruptcy everyday, to help them out of financial difficulties.
Bankruptcy automatic stay
When your file for bankruptcy you receive what is known as the automatic stay, this is where the harassment from creditors will have to stop immediately by law. Also any lawsuits filed against you must be stopped as well. The automatic stay is there to give you some space from the constant harassment, so you can get your finances worked out, or in a more manageable position.
Save your home from foreclosure with bankruptcy
You can apply for either chapter 7 or chapter 13 bankruptcy either one will give you the automatic stay. Now if you are trying to stop foreclosure use chapter 13, it can be quite useful in that situation. The automatic stay will temporarily stop the foreclosure proceedings as well.
Prevent having your utilities turned off with bankruptcy
The automatic stay can also help you if utility companies have threatened to turn off your water, electric, telephone or gas. When you file for bankruptcy, the disconnection is at least prevented for 20 days. When the bankruptcy goes through, most utility debts will be discharged all together.
Bankruptcy and Eviction
If you landlord has been threatening to evict you the automatic stay may just help you stay in your apartment. Although keep in mind with the new bankruptcy laws, the landlord can evict non-payers of the rent a lot easier now. If your landlord created a judgment of possession against, prior to you filing bankruptcy, then likely they can evict you. Automatic stay will not protect you if you have damaged the landlord’s property.
Bankruptcy can help your situation, if you are struggling a lot on your finances and it all feels too overwhelming. There are many different rules and regulations to the whole bankruptcy process, but talking to a bankruptcy attorney can help you sort out what choice may be right for you.
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