Bankruptcy is not an easy process, regardless of the route that an individual chooses to pursue to take control of their financial problems. A Tennessee resident who elects to use Chapter 7 bankruptcy to manage their debts may worry about liquidating their assets and whether they will emerge from the process able to move their life forward. One aspect of bankruptcy that is incredibly helpful to men and women who are struggling under the weight of outstanding financial obligations is the automatic stay. When a person files for bankruptcy the automatic stay stops creditors from taking further action against the person throughout the duration of their bankruptcy proceedings.
The automatic stay can stop a person from being thrown out of their home. That is because the legal process of eviction is stopped once a person files for bankruptcy. The eviction process may begin again when the bankruptcy process ends, though during the bankruptcy proceedings the debtor may be able to work with their creditor to find a way to stay in their home.
Additionally, the automatic stay can stop a creditor from garnishing a debtor’s wages. It can be hard to get ahead financially if a debtor cannot take home their full paycheck, and as such the automatic stay stops the garnishment process to allow the individual to fully receive the money that they earn.
The automatic stay only lasts as long as a debtor’s bankruptcy proceedings are going on. It lifts when the bankruptcy process ends. Before filing for Chapter 7 bankruptcy, readers are encouraged to discuss their options with trusted legal professionals so that they know what to expect and can make decisions that they believe further their best interests.