When you file a personal bankruptcy case, the automatic stay immediately goes into effect. The stay provides you relief from your creditors because all collection efforts against you must cease. This means that all telephone calls, demand letters and lawsuits come to a halt. If you receive any communication from your creditors after they have received notice of your filing, you should contact your bankruptcy attorney.
While your Chapter 7 or Chapter 13 case is pending, the automatic stay also prevents many detrimental things from happening. For example, a creditor cannot proceed with a repossession or foreclosure action without obtaining permission from the bankruptcy court. If your utilities were at risk of being shut off, the automatic stay can postpone disconnection for at least a few weeks. The stay also terminates any garnishments pending against you.
During this reprieve from harassing creditors, you will have time to focus on negotiating with your creditors. We can help you understand which debts will be eliminated in your filing and your options for working out past due amounts on your secured debts, such as mortgages or vehicle loans.
There are some matters that the automatic stay cannot stop. For instance, a criminal proceeding that does not involve financial penalties will move forward. Additionally, a bankruptcy filing will not eliminate your obligation to pay alimony or child support.
If you have questions regarding your finances and how a bankruptcy filing will help give you the time you need to get your life back on track, call us for an appointment today.
Contact The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office, LLC. DeLadurantey Law Office focuses on student loan debt, 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 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. We can be contacted by phone: (414) 377-0518 and can be found on the Internet and on Facebook.