As soon as you file your personal bankruptcy case, the automatic stay is effective. The stay is a type of injunction that prohibits your creditors from taking further collection activity against you while your bankruptcy is pending. Because the automatic stay goes into effect immediately upon your filing, it can be extremely beneficial when you are facing financial emergencies such as:
- Foreclosures. Filing a bankruptcy case can temporarily halt a foreclosure action. During this time, you can hopefully negotiate with your mortgage lender or, at a minimum, remain in your house for a few additional months.
- Garnishments. A garnishment is a collection tool creditors use to remove funds from your paycheck or bank account to pay a judgment they have obtained against you. Upon your bankruptcy filing, the garnishment is stopped. Additionally, you may also be allowed to discharge or eliminate the debt linked to the garnishment action. In some cases, the creditor may even have to return a portion of the garnished funds.
- Evictions. If your landlord is taking action to evict you from your home, the eviction process may be delayed by a bankruptcy filing, depending on whether the landlord already has a judgment for possession.
- Utility disconnections can be reinstated after filing, even if your power is currently turned off. If you are in the middle of winter and it is freezing outside, you do not want the electric or gas company to disconnect your service, filing a bankruptcy can help.
If your financial situation has gotten to the point where you are facing one of the above situations, it is time to contact an experienced attorney at DeLadurantey Law Office, LLC, to discuss how bankruptcy can benefit you.
At DeLadurantey Law Office, LLC, we help businesses and families find their way out of highly difficult financial situations. We provide the advice and guidance you need in obtaining debt relief through bankruptcy and debt negotiations. We can also assist you in defending a foreclosure action. Contact us at 414-377-0518 to discuss how our Milwaukee bankruptcy attorneys can assist you.