If you’re behind on your debts, it probably feels like you’re at a disadvantage when it comes time to negotiate with your creditors. And, in many ways, you may be. However, for debtors who declare bankruptcy, one provision of the Bankruptcy Code in particular – the automatic stay – may level the playing field.
The automatic stay is sometimes referred to as “the big stop sign.” In general, the automatic stay puts a stop on all legal proceedings, including wage garnishments and the repossession efforts of creditors. For people who are in a losing battle for their home, car, paychecks or home furnishings, the automatic stay could be just what they need.
On the other hand, it’s important to understand that although the automatic stay is powerful and useful, it isn’t a silver bullet. The automatic stay has its limits. For instance, it won’t put an end to child support payments or criminal proceedings. And if you don’t make monthly payments on your secured loans, its benefits could be short-lived.
The dedicated, experienced and knowledgeable bankruptcy professionals at the law firm of Fears Nachawati are prepared to answer your questions about the automatic stay and the many other bankruptcy provisions that might help you. For your free consultation, call us today. We’re ready to help you.