In addition to significant financial stress, owing a large amount of debt can bring a host of significant and unpleasant consequences to your life. From growing interest to phone calls from creditors, it may seem like no part of your life is immune from the effects of unmanageable debt.
Consumers overwhelmed by debt often feel out of control, but there are several things that a Tennessee resident can do to escape from this burden. One of the options available to you may include filing for bankruptcy. In addition to providing you a way to deal with your debt once and for all, it can also provide you the benefit of the automatic stay.
What does the automatic stay mean for me?
The automatic stay is a significant benefit of filing for bankruptcy. You will enjoy this protection whether you filed for Chapter 7 or Chapter 13 bankruptcy. The automatic stay goes into effect the moment that you file, immediately halting all creditor contact, harassment and collection efforts against you. The automatic stay can do the following:
- Stop foreclosure on your home
- Keep your utilities from being cut off
- Stop any garnishment of your wages
- Halt any eviction effort against you
- Keep creditors from contacting you in any way
The intent of the automatic stay is to provide you with a certain amount of security as you work through the terms of your bankruptcy agreement. Many people who have been dealing with an onslaught of phone calls, bills and other harassment from creditors may find the automatic stay to be a lifesaver.
While there are many benefits to the automatic stay, there are certain things that it cannot do for you. For example, it cannot stop proceedings against you for back taxes, stop lawsuits over child support or halt any criminal proceedings against you, no matter the charge.
A better financial future
You may not think that bankruptcy is the right choice for you, but in reality, it could offer you a viable, organized way to deal with your debt once and for all.
The automatic stay is one of the many benefits of consumer bankruptcy, and it could also offer you a way to a better financial future. If you are currently struggling with debt and creditor harassment, you owe it to yourself to learn more about your legal options, including the positives of filing for bankruptcy.