If you’re buried under the weight of overwhelming debt, the incessant calls from creditors can be like a relentless, unyielding storm. Bankruptcy, however, is the calm in that storm. Here, the Whitten & Whitten team helps you discover how bankruptcy can act as a cease-and-desist order to the collection activity causing undue stress.
For most, the word ‘bankruptcy’ carries a stigma, but in truth, it is a shield that the law has put in place to protect you in times of financial vulnerability.
Bankruptcy is a legal proceeding in which a person who can no longer pay their debts can seek relief from their creditors. The underlying principle is to offer a fresh start to the individual while treating creditors fairly.
Once your bankruptcy is filed, an automatic stay is issued, an injunction that stops actions by creditors to collect debts from a debtor.
The automatic stay will stop any pending mortgage foreclosure proceedings. If you’re behind on your mortgage payments and facing foreclosure, the automatic stay will provide temporary relief and time to catch up on the overdue amounts.
If your car was recently repossessed, filing for bankruptcy can help you regain it. The automatic stay will keep the creditor from selling your vehicle and allow you to catch up on missed payments.
Wage garnishments can be crippling for individuals already struggling with debt. The automatic stay stops wage garnishment, protecting your hard-earned income from being taken away by creditors.
A bank levy allows creditors to take funds from your bank account to repay debts. With an automatic stay in place, this collection activity is halted, giving you time to reorganize your finances.
One of the most significant benefits of bankruptcy is that it ends creditor harassment. The automatic stay prevents creditors from contacting you and demanding payment, providing much-needed relief from the constant stress of collection activity.
It’s essential to note that the automatic stay does not stop all collection activities. Some exceptions include the following:
Discussing your situation with a bankruptcy attorney is crucial to determine if any exceptions may apply in your case. However, for most individuals struggling with debt, bankruptcy provides an effective solution to stop collection activity and regain control over their financial future.
If you’re struggling with overwhelming debt and facing relentless collection activity, it’s time to take action. Our firm has years of experience navigating complex bankruptcy proceedings and helping individuals regain control of their finances. Contact Whitten & Whitten today for a consultation and take the first step towards a more stable financial future. Together, we can overcome any challenge.
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