Debt can be overwhelming. From the phone calls at all hours, the letters in the mail and the threat of losing some of your personal property, you may be under an impossible amount of stress. But you do not have to be.
You need to take steps to make the calls and harassment stop, and one of these may include filing for bankruptcy. While there is often a negative perception associated with this step, it can actually offer you immediate relief from collection efforts and debt collectors.
Benefits of an automatic stay
One of the many reasons why you may want to consider filing for bankruptcy is the automatic stay. This will go into effect as soon as you file for bankruptcy, putting an immediate halt to contact from debt collectors, creditors and other parties trying to get you to pay. It provides you with immediate relief as these parties can no longer continue to call or take action against you upon receiving notification of a bankruptcy filing. The automatic stay will put a halt to the following things:
- Efforts to foreclose on your home
- Threats of repossession or efforts to repossess your vehicle
- Eviction from your rented residence
- Garnishment of your wages
- Disconnection of your utilities in your home
The pressure to pay can be the worst part of owing debt that you cannot manage. Your circumstances may feel completely out of your control, but there are steps you can take to reclaim your life and start dealing with certain types of debt once and for all.
It can be helpful to understand that there are limits to what the automatic stay can do. For example, it will not relinquish you from past-due child support obligations. It will also not eliminate tax debt, and it will not halt any criminal case against you.
Other benefits of bankruptcy
Bankruptcy may not be your first choice, but it could be the right choice for your individual situation. This process can help you get rid of certain types of debt or following the terms of a repayment plan in an organized manner. If you want a better financial future, you may want to think about whether this step will help you obtain the freedom and security you need.