Like any legal process, bankruptcy takes time. While you look forward to a future of debt relief, one simple, yet necessary step can bring you immediate stress relief.
Of all the benefits of a Chapter 7 or Chapter 13 filing, the most satisfying "perk" is the automatic stay that stops collection actions. Months and years of a continuously ringing phone, a flood of final notices, and threats of lawsuits suddenly become a thing of the past.
An automatic stay is a court order that stops collection actions with the full force of the law. While it does not discharge your debts, creditors are put on notice to end all collection actions. You can move on with your life free of their harassment. You can focus on the future fresh start that has eluded you for far too long.
Creditors who do not abide by the injunction face serious consequences that include actual and punitive damages. Ironically, they run the risk of owing you money.
An automatic stay can also keep a roof over your head. If you are facing the loss of your home, foreclosure actions must stop upon the filing of the court order. Finalizing a Chapter 13 repayment plan will reinstate monthly installments and allow you to catch up on missed payments over three to five years.
Putting off resolving your financial problems will only make a bad situation worse. An automatic stay is a proactive step towards your peace of mind. Securing one requires proactive steps on your part, specifically contacting a bankruptcy attorney.