When medical bills, credit card debts and other consumer debts you accumulated in Ohio become too much to manage, you may devote some consideration to filing for bankruptcy as a means of giving yourself a fresh financial start. While doing so can potentially help you work through a number of different areas, it may, too, help put a stop to the steady stream of communications you are receiving from creditors wanting you to make good on your debts.
How? According to LendingTree, once you initiate the bankruptcy process, something called automatic stay takes effect, and it can prevent your creditors from coming after you, at least for a certain amount of time. Typically, the automatic stay period starts as soon as you file for bankruptcy, and, in most cases, it continues either until your bankruptcy case comes to a close or your debts undergo discharge.
So, what types of creditor communications can bankruptcy’s automatic stay protect you against? In addition to the annoying, time-consuming and potentially embarrassing phone calls from creditors, bankruptcy’s automatic stay may help you keep your home, at least for some time. If a creditor has begun foreclosure proceedings against you, he or she must halt the process while the automatic stay period is in effect.
Similarly, if your landlord was in the process of evicting you from your home, but he or she does not yet have an eviction judgment for possession, the automatic stay could potentially buy you some time to catch up on your payments. The automatic stay period can also prevent utility companies from disconnecting your services for some time, and it can, too, keep you from losing more money to wage garnishment, at least while it remains in effect.
This information about what bankruptcy’s automatic stay protects you against is meant for educational purposes and does not constitute legal advice.