How Bankruptcy Protects You from Creditors
Facing the possibility of bankruptcy is not a situation that any of us wants to be in. Anyone who has been overcome with debt knows that it can wreak havoc on all aspects of your personal and professional life. As a debtor you have likely been harassed by creditors and possibly threatened with foreclosure or repossession. The stress of debt may have spilled over into other parts of your life, negatively affecting your relationships with loved ones and hurting your work ethic. While bankruptcy may seem embarrassing and disheartening, it can be a powerful tool to help you get your financial life back on track.
When you file for bankruptcy, you are given certain protections under the law that safeguard your property and finances from creditors. As soon as you file for bankruptcy, an automatic stay goes into effect. This is a multi-pronged defense that allows you to organize your finances without further intimidation from your creditors, collection agencies, and repossession agents. Creditors are not permitted to contact you once you have filed for bankruptcy, cannot pursue repossession or foreclosure, and cannot take legal action against you while your bankruptcy is underway.
Under Chapter 7 bankruptcy, the automatic stay is only temporary, giving you just enough time to figure out how to proceed financially. Under Chapter 13, however, the automatic stay lasts as long as you are repaying your debts, typically a period of 3 to 5 years. Debtors can use this time to catch up on mortgage payments, car payments, and other debts to protect property from foreclosure or repossession. The protection provided by the automatic stay under bankruptcy can save debtors from the anguish of losing their home or car so that they can emerge from debt with dignity.
While the decision to file for bankruptcy is never easy, it can save you years of being mired in debt and provides legal protections to help you get back on your feet. To learn more about bankruptcy and restoring your finances, contact the experienced Milwaukee bankruptcy lawyers of the DeLadurantey Law Office, LLC today at 414-377-0518.