If you’re behind on your mortgage, car loan, or credit card bill, you’re probably receiving aggressive phone calls and letters from your lender demanding immediate payment. This is the standard protocol for creditors, but in most cases, it only serves to stress out their debtors even more.
If you had the resources to make your payments on time, you would, and harassing phone calls aren’t going to help. Fortunately, there’s an effective way to stop such harassment, and it’s called an automatic stay.
If you would like to discuss your situation with a bankruptcy attorney in New Jersey and learn more about the advantages of filing, contact the Law Office of Stuart M. Nachbar. Mr. Nachbar has been practicing bankruptcy law for more than two decades, and he has the knowledge and experience to help you regain your financial footing. Call 973-567-0954 to schedule a consultation.
What Is an Automatic Stay?
Pursuant to Section 362 of the U.S. Bankruptcy Code, an automatic stay takes effect the moment you file for bankruptcy. This automatic stay will prevent creditors from:
- Starting or moving forward with judicial proceedings against you;
- Taking action to obtain your property; and
- Taking action to create or enforce a lien against your property.
In simpler terms, an automatic stay essentially stops creditors from harassing you, threatening to take action against you, or actually taking action against you as a result of your unpaid debt.
What Are Some Common Actions That an Automatic Stay Can Prevent?
If you are behind on your utility bills and you file for bankruptcy, an automatic stay will prevent your water, electric, gas, or phone provider from disconnecting service for at least 20 days. This can give you time to find other accommodations so your family does not have to go without basic necessities.
An automatic stay will also stop foreclosure proceedings temporarily. If you want to stop the proceedings permanently, talk to a chapter 13 bankruptcy lawyer about your options.
In most cases, filing for chapter 13 is more effective than declaring chapter 7 when it comes to keeping your home. If you do not own your home but your landlord is threatening to evict you, an automatic stay may provide some breathing room in that scenario, as well. This only applies if the Landlord does not have an actual Order of Eviction. Once there is an Order for Eviction, it is much harder to stop even with the automatic stay on your side.
An automatic stay will also stop wage garnishments and can prevent a public agency from reclaiming any benefits that they overpaid you. Although there are ways creditors can eventually get around an automatic stay, having one in place will at least give you enough time to assess your financial situation and determine the best way to proceed.
If you are tired of creditors harassing you for payment and you think filing for bankruptcy may be the answer, a chapter 7 or chapter 13 bankruptcy lawyer in New Jersey can help you explore your options. Call 973-567-0954 to schedule a consultation with Stuart M. Nachbar. You can learn more about bankruptcy proceedings by visiting the USAttorneys website.