When you file a personal bankruptcy, the automatic stay immediately goes into effect. The stay prohibits creditors from pursuing any collection activity against you. In other words, all litigation against you, including foreclosures, must stop. This can be a significant comfort if you are tired of being harassed and losing sleep over how to pay your bills.
The automatic stay can be particularly beneficial in emergency situations such as:
Foreclosure. When you are facing a foreclosure action, a bankruptcy filing can immediately and temporarily stop the proceedings and buy you some time. During this time, we can assist you with negotiating a foreclosure plan that may allow you to avoid adverse tax consequences or a deed-in-lieu of foreclosure.
Utilities. When you miss payments on your utility bills, including electricity, water, gas or phone service, the automatic stay can prevent disconnection for at least 20 days. While this may not seem like a big deal to you, it can be very important if you are facing freezing temperatures without your heater. Obviously, past due utility bills are not a basis for filing bankruptcy, but if you aren’t paying utilities, you likely are facing other financial problems as well.
Garnishments. The automatic stay stops garnishments against your bank account or wages. You may also be able to discharge or eliminate the debt linked to the garnishment.
Eviction. The automatic stay can provide some relief when you are facing an eviction. If the landlord has already obtained a judgment against you, the stay will not stop the eviction. However, if no judgment has been granted, your bankruptcy filing gives us time to negotiate with your landlord.
The above list is not exhaustive. There are other “emergency” situations that can be stopped by filing a bankruptcy case. Let us review your individual circumstances and help you decide if filing a Chapter 7 or 13 is the best option for you.
Contact The “Milwaukee Bankruptcy Attorneys,” DeLadurantey Law Office. LLC for all your Chapter 7 and Chapter 13 bankruptcy needs. Whether you need debt negotiations or debt relief, or even foreclosure defense, DeLadurantey Law Office will handles bankruptcy matters for 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 can be contacted by phone at (414) 377-0518.