Sabtu, 14 Juli 2012
Anyone who has filed bankruptcy will tell you that one of the biggest benefits of filing bankruptcy is the automatic stay. The automatic stay is a legal process that goes into effect the moment your bankruptcy petition is filed with the court. It prohibits all creditors from any contact with the debtor and it stops all collection attempts. This means no more fears of answering the telephone and being attacked by aggressive debt collectors. No more letters of delinquency coming to your house. The stay will even put a halt to wage garnishments, lawsuits, judgments, and even foreclosure. The stay has the power of the US Bankruptcy Court behind it and can allow a frazzled debtor peace of mind during a time of great stress to get themselves and their finances together. When someone is at the end of their financial rope and burdened with overwhelming debt, the automatic stay can give them much needed immediate relief so they can regroup and move forward with a clear thought process in their bankruptcy filing. After the bankruptcy petition is filed the bankruptcy court, the court will immediately send notices to all of the creditors informing them of the bankruptcy filing and the automatic stay. But what if a creditor contacts the debtor prior to receiving the notice of the bankruptcy filing from the court? The debtor can simply tell the creditor that they have already filed bankruptcy and give the creditor the bankruptcy case number that will be generated and given to the debtor at the time of the filing. The debtor can also confidently tell the creditor to no longer contact them or they will be in violation of the automatic stay and face possible legal repercussions. The debtor should document any calls or collection attempts by a creditor that continues to contact them after being informed of the bankruptcy and automatic stay and inform their bankruptcy attorney right away. The bankruptcy attorney will directly contact the creditor in violation to inform them of pending legal action if they persist. If the creditor continues they may be found in violation of the automatic stay by the bankruptcy court and can be forced to pay damages to the creditor and fines for breaking the law, depending on how flagrant the violation was. This shows the true power of the automatic stay and how it is there to protect the individual filing bankruptcy. Giving someone a little extra time to get their life and finances together also shows that filing bankruptcy was not designed as a punishment for honest people. Filing bankruptcy was created by Congress as a means to give hard working Americans that are buried in debt a fresh start. The ability to file bankruptcy has provided relief for millions of people each year in financial hardship and allowed them a new beginning. With the New Year here and no signs of real financial recovery for the country there are many more people that will be facing the prospects of filing bankruptcy and taking advantage of the benefits of the automatic stay. The author started DebtFreeBankruptcyAttorney.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.