Understanding the Automatic Stay
Bankruptcy isn’t just a means for achieving debt forgiveness or relief. It is also intended to give immediate protection to people who cannot pay back their debts. If you are in debt, you may receive daily phone calls or letters from harassing creditors calling to collect. Fortunately, debtors can be freed from collection calls through what is referred to as the automatic stay. This is a very important bankruptcy protection because it prevents creditors from taking action on debts, allowing the debtor to focus on rebuilding his or her credit score.
If you or someone you know is facing financial difficulty and are the target of harassing collection calls night and day, you should consider filing for bankruptcy. To learn more about how the automatic stay works and applies to your case, contact a Raleigh bankruptcy lawyer of the Bradford Law Offices, PLLC, today at 919-758-8879 and schedule a free consultation.
How the Automatic Stay Works
It can be extremely stressful dealing with creditors on a daily basis, especially when they call your home and offices. Fortunately, the automatic stay goes into effect as soon as a debtor files for bankruptcy, stopping creditors from doing any of the following actions:
- Trying to repossess any of the debtor’s property
- Contacting the debtor by phone or mail
- Continuing any legal actions against the debtor
- Trying to enforce a lien on the debtor’s property or garnishing wages
- Foreclosure sales
If your creditors are doing any of the above after you have filed for bankruptcy, you need to speak with a skilled bankruptcy attorney to discuss the legality of this situation.