If you owe more money than you can afford to pay, you are probably getting frequent phone calls and letters from bill collectors. If that were not enough, your failure to pay rent or your mortgage payments could mean threats of losing your home. There are few more effective means of eliminating these threats than the automatic stay. This legal stop is only available with the filing of chapter 7 bankruptcy, so read on to learn more about this powerful form of financial relief:
No more collection activity: Once you file for bankruptcy, bills collectors will have to move on to the next debtor. You will not be getting any more phone calls or letters from those you owe money to, with very few exceptions. You may need to take matters into your own hands during the first week or so by providing those callers with your federal case number and your lawyer's name, but after that, you should experience blissful silence from those bill collectors.
Keep your home, for now: The threat of losing a roof over you and your family's head can be devastating, but your chapter 7 filing will put a temporary stop to those punitive proceedings. You still will need to make some payment arrangements in an effort to try and get caught up on those back mortgage payments, but for now, you get a temporary reprieve. One important, and positive, point to keep in mind is that a chapter 7 filing will mean that you no longer need to make those large minimum payments to your credit card accounts, and that is money that can now go to something more important: getting your mortgage back on track.
If you are a renter, the ability to stay in your home depends on how far along in the eviction process your landlord has gotten around to. If you have been threatened with eviction, but so far no paperwork has been filed with the courts, you may have a temporary break in the need to pay your rent. If your landlord has already filed with the courts for eviction, you may need to find another place to live right away. Make every effort to make things right with your landlord using the extra funds from the credit cards.
Your bankruptcy attorney can help you identify other means of immediate relief from your chapter 7 filing, such as stopping those utility shut offs and more. Contact a law office like Law Offices Of Harry G Lasser for more information and assistance.