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Often, the most stressful thing about being in debt is not the debt itself, but the constant calls and letters from your creditors. They can be very overwhelming and intimidating, and easily robs you of your peace of mind.
The good news is that filing for bankruptcy in Raleigh, NC doesn’t just help you eliminate debt – it also triggers the automatic stay, which is one of the most powerful ways that bankruptcy protects debtors.
What is the Automatic Stay?
Filing for bankruptcy activates a court order called the automatic stay. This order immediately stops most collection actions being taken against you by a collection agency, creditor, or government entity.
The automatic stay is one of the most compelling reasons to file for Raleigh bankruptcy. It can temporarily prevent you from being foreclosed on or being evicted. The automatic stay can also prevent you from losing a portion of your income through wage garnishment and getting utility services shut off.
Dealing with massive debt is already difficult enough as it is. The automatic stay is designed to give you breathing room. Without the pressure from creditors and fear of losing your basic needs, you can focus on the bankruptcy process and getting back on your feet.
What Can the Automatic Stay Prevent?
The automatic stay can temporarily stop several debt-related emergencies. In general, it can help you with:
- Foreclosure
The automatic stay can stop foreclosure proceedings. However, what happens next depends on the type of bankruptcy you file for. If you want to keep your property, you get a better chance with Chapter 13 because the repayment plan lets you catch up on missed payments. On the other hand, the stay may be temporary under Chapter 7 bankruptcy because it has different property exemptions.
- Utility Disconnections
If you’re behind on utility bills like water, gas, electric, or telephone service, the company may threaten disconnection. The automatic stay can prevent this for a couple of weeks or more. This gives you valuable time as you figure out your next steps.
- Eviction
An automatic stay also offers temporary help against getting evicted. If you’re facing eviction, however, talk to our bankruptcy lawyer in Raleigh ASAP. In some cases, eviction proceedings can still continue, such as when there’s already a judgment of possession against you. Weik Law can help you explore your options during our consultation.
- Wage Garnishments
Filing for bankruptcy in Raleigh, NC stops most wage garnishments in their tracks. In other words, creditors can’t touch your salary as payment for what you owe, and you can take home your full income.
While the automatic stay is indeed a powerful tool, it’s also more complex than it seems. Let Weik Law’s experienced bankruptcy attorneys explain how it works and help you maximize its benefits.
Regain Financial Control by Filing for Bankruptcy
Bankruptcy may be a last resort for many, but it’s also one of the most potent strategies to regain control over your life. The automatic stay is just one way it helps lighten the burden of debt. Let us help you navigate this challenging time on your way to a debt-free life.
Call Weik Law Office today at 919-845-7877 for a free consultation, and set up a time to speak with one of our friendly professionals.