When a person is facing overwhelming debt, bankruptcy is the right option to go for, especially if the reason for piling debts is credit cards, medical bills or personal loan. Most of the time people avoid filing bankruptcy, but they don’t realize that bankruptcy is beneficial for the consumer, who is facing foreclosure or persecution from a debt collector.

You can come to my law firm, we help you to analyze your case and guide you whether you need to file for Chapter 7 Bankruptcy, or there is any other way to recover from debt. When you are facing such complex legal issues, it is always advisable that you consult a bankruptcy attorney, who can help you get to the bottom of your case, and provides proper legal guidance throughout the process, and explain you the benefits of bankruptcy. For such cases, it’s always better to hire an experienced attorney, and The Law Office of Daniel Podkowa is the best you can get as I have 24 years of legal experience, and have helped many clients with Chapter 7 Bankruptcy.

When you file an appeal for bankruptcy, your creditors are automatically banned from taking any action against you or contacting you, writing to you, foreclosure and wage garnishment.

This is called “automatic stay”, where a creditor is barred from harassing debtor, and it comes into action as soon as you file Chapter 7 Bankruptcy. As long as the automatic stay is in effect, the creditor may not continue a lawsuit, wage garnishments or even debtors demanding payments.

In what ways automatic stay can help debtor?

 

• Disconnecting utilities: If you are lagging behind on payment of utility bills like water, gas, electricity or telephone service, and the company is threatening you for disconnection of services, in such scenario automatic stay will prevent disconnection for minimum 20 days.

 

• Foreclosure: The Automatic Stay temporarily stops the proceedings of foreclosure by the debtor.

 

• Eviction: The Automatic Stay provides you help if you are evicted from your own house, but if your landlord has evicted you from his house the automatic stay can just buy you few days or weeks, but the landlord can ask court to lift the stay and allow the eviction and the court agrees to do so.

 

• Wage Garnishment: When you file bankruptcy, automatic stay puts hold on the wage garnishment. Wage garnishment is a process of deducting money from employee’s salary until the debts are recovered, or any alternate arrangement is made to pay off the debt.

Where Automatic Stay doesn’t help?

 

• Any criminal proceedings against you.

 

• Second Bankruptcy filing, if you are filing bankruptcy for the second time in a year, then the automatic stay will be applicable for only 30 days.

 

• Third bankruptcy filing, if in a year you are filing for bankruptcy for the third time,

      The automatic stay will never go into effect.

 

• Tax audit, tax return demand.

 

• Child or family support cases.

Bankruptcy may seem devastating, but it's actually the right thing to do. It eradicates your debts and makes your life simpler. It gives your financial relief. Automatic Stay is complex to understand and its application varies according to the cases, so it is always better to hire a very good and well-experienced attorney. For that Attorney, Daniel Podkowa is the best choice.