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The automatic stay and the benefits of bankruptcy

Do you have a lot of debt? Are you getting calls from debt collectors and creditors at all hours? You know how stressful it can be to feel like you are so far behind that you will never catch up. Overwhelming debt may feel like it's dragging you down, and the pressure from debt collectors is only making it worse.

Thankfully, there are ways out of this situation. For many overwhelmed California consumers, a Chapter 7 bankruptcy filing is a beneficial way to deal with certain types of debt. If you are unsure of whether you could ever get ahead on your own, this could be an appropriate and smart course of action for you as well. One of the many benefits of this process is the fact that filing will enact the automatic stay, which puts a halt to creditor contact.

Putting an end to the harassment

Debt collectors and creditors are only after one thing -- your money. They don't care if they are inconveniencing you or adding additional stress to your life. Sometimes, the tactics they employ step over the line, and they can be hostile, intimidating and even threatening. No matter the type of contact you are experiencing, the automatic stay will stop it. This goes into effect when you file, putting an end to the following:

  • Phone calls from agencies and creditors
  • Foreclosure proceedings against your property
  • Process of disconnecting your utilities
  • Garnishment of your wages
  • Repossession of your vehicle and other things bought on credit 

The purpose of the automatic stay is to allow you to maintain some semblance of stability while you meet the terms of your bankruptcy plan and requirements of the process. If creditors continue to contact you, it may be grounds for legal action. 

Making the right choice for your future

It is not easy to decide whether you want to move forward with a bankruptcy filing. After all, it may seem embarrassing, or you may wonder how you will ever recover financially. It may be helpful for you to note that many applicants feel a sense of relief when automatic stay goes into effect and they are able to pursue a better financial future without the additional stress of collections and creditor action.

If you are unsure about how this process may benefit you or which chapter of bankruptcy is right for your situation, you may want to start by seeking a complete evaluation of your case. This can help you understand the best way forward for you and your family.

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