One of the most overwhelming aspects of having a significant amount of debt is the threat that this can have on your property and your way of life. Missed payments and outstanding balances will eventually lead to calls from Tennessee creditors, even harassment, and you may feel that there is no way out of your current situation.
Although you may not realize it at the time, you have the ability to make this harassment and contact from creditors stop. By filing for bankruptcy, the automatic stay will immediately go into effect. This stops all creditor contact and shields you from collections efforts against you, including repossession and wage garnishment.
What does the automatic stay do?
One of the most stressful aspects of overwhelming debt is the threat of losing your personal property. Whether it is the garnishment of your wages or the loss of your car, these threats and actions are a direct threat against your way of life. The automatic stay offers bankruptcy petitioners the benefit of protection against such efforts, allowing them to focus on the terms of their bankruptcy plan.
The automatic stay can offer you many benefits and provide you with a sense of stability during a difficult financial phase. Some of these benefits include:
- Prevent utility companies from disconnecting your power
- Halt any effort to evict you from your home
- Stop wage garnishment
- Stop the foreclosure process
- Prevent the repossession process
- Prevent a government agency from taking part of your benefits
While it does offer you many benefits, there are certain things that it cannot do. For example, it cannot shield you from the repercussions of unpaid child support or back taxes. If a creditor violates the automatic stay, the agent or the company could be subject to various sanctions and penalties.
Understanding the benefits of bankruptcy
Bankruptcy is rarely a person's first choice, but it could be a positive step for many individuals. Once you learn about the benefits and protections that this step may provide for you and your family, you may find that it is the optimal way by which you can deal with debt once and for all, laying the foundation for a strong financial future.
Dealing with creditor harassment and other consequences that are the result of significant debt is stressful, but you can make it stop. You may find it useful to learn more about the bankruptcy process and the ways that it can help you, including the benefit of the automatic stay.