Chapter 7 Bankruptcy | What is Automatic Stay?
Chapter 7 Bankruptcy | “[T]he automatic stay may provide a powerful reason to file for bankruptcy.”
So says a national legal research organization in discussing this debt-relief tool. The above endorsement is both succinct and unequivocal. Indeed, the automatic stay can be a potent weapon in the arsenal of any challenged debtor in Florida or elsewhere who is squared off against creditors such as collection agencies, government actors or mortgage lenders. Following are some of the central reasons why.
For starters, the stay puts an automatic stop to any litigation that might be pending. The salutary effects of that are obvious, given that a consumer can stop foreclosure proceedings, postpone civil proceedings that can involve important family law matters and keep creditors such as utility providers from cutting off essential services.
A Chapter 7 bankruptcy filing and the attendant automatic stay it yields also brings an additionally important benefit. As noted by the above-cited legal information provider, “Filing for bankruptcy stops garnishments dead in their tracks.”
It takes no more than a moment to fully appreciate how critically important that can be to a struggling debtor.
The automatic stay also shuts off the harassing — often intimidating, sometimes illegal — contacts many consumers receive from debt collectors. Those contacts often persist daily, from early in the morning through the late evening hours. Moreover, they are often targeted at third parties, such as employers and friends.
Although an automatic stay is not a permanent panacea for debt problems, it is a valuable tool exercised by many debtors through the bankruptcy process. A proven debt-relief attorney can fully explain its scope and utility and provide additional information and strong representation in any debt-related matter. – Miami Bankruptcy
Specializing in bankruptcy and foreclosure law for over 20 years. Call attorney David Pinkston for a free consultation today: 904.306.5791. #FloridaBankruptcyAttorney #FloridaBankruptcy
If you are thinking about #bankruptcy or #foreclosure in the Jacksonville, Florida area, you should call attorney David Pinkston. David is very experienced with all aspects of bankruptcy law yet very personable and easy to talk to. Call Us Today! 904.306.5791