If you are drowning in debt, filing for bankruptcy may seem like the best solution. However, there are 3 situations when filing for bankruptcy may be a very good option to resolve your debt situation. It is because of something called the ‘automatic stay.’ The Automatic Stay stop keeps your creditors from pursuing collection activities.
Wage Garnishment: Filing a bankruptcy petition will generally prevent a creditor from further collection activities. This includes garnishing your wages. To get this automatic stay lifted, a creditor must not only make a request to the bankruptcy court, the creditor must have a valid reason for doing so. Note, however, an automatic stay of a wage garnishment does not apply to domestic support obligations such as child support or alimony.
Car Repossession: Filing for bankruptcy will also create an automatic stay such that your car will not be repossessed. If the lender has already repossessed your car, it may not be too late! If you act quickly enough, they will be required to return your vehicle.
Foreclosure: The good news, once a bankruptcy petition is filed; the automatic stay stops a foreclosure sale and in some jurisdictions will give you access to special “mediation programs” which can facilitate getting a loan modification.
Before filing a bankruptcy, consult with an experienced bankruptcy attorney.
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Contact the “Milwaukee Foreclosure and Bankruptcy Attorneys,” DeLadurantey Law Office, LLC. DeLadurantey Law Office, LLC focuses on Chapter 7 and 13 bankruptcy, debtor’s rights, debt negotiations, debt relief, mortgage loan modifications, and foreclosure defense. A “defender of the little guy,” DeLadurantey Law Office, LLC serves the following location – Milwaukee, South Milwaukee, West Milwaukee, Waukesha City, Waukesha Town, Kenosha, Racine, and all other municipalities in Milwaukee County, Waukesha County, Kenosha County, and Racine County. DeLadurantey Law Office, LLC: (414) 377-0518.