There are countless worries that come along with excessive and unrelenting debt. Being in debt can put extreme amounts of stress on a family and you may feel like there is nothing that can save you. Fortunately, filing for bankruptcy is a solution that can help you in more than a few ways.
It may seem intimidating and like a poor option, but filing bankruptcy can help your family get out of the hole you are in and start fresh. One of the main benefits of filing bankruptcy is that an automatic stay kicks in. This is a benefit that can save many people from the harsh consequences of debt.
What is an automatic stay?
An automatic stay is a policy that protects you from creditors. It also stops lawsuits filed against you by creditors, government entities and collection agencies. This policy can help you save your home and protect your family from uncertainties and threats.
What does it do?
There are many ways the automatic stay helps your family because there are many entities that fall under its protection. A few ways the automatic stay protects you are:
- Stops utilities like electricity and water from being shut down
- Stops foreclosure and evictions – you may be able to keep your home
- Stops wage garnishment –you can take home your whole salary
- Stops creditor harassment and badgering
These benefits make filing bankruptcy worth it for many families. You may want to consider it if any of these apply to you and your family.
Unfortunately, there are a few instances that the automatic stay does not cover including:
- IRS audits
- Child support payments
- Criminal proceedings
- Loans from your pension
You may want to consult a bankruptcy attorney who can more carefully examine your situation and determine how the automatic stay can benefit you, specifically. Overall, this policy helps people preserve their lives and get back on their feet after bankruptcy. The automatic stay could save you and your family from life-changing circumstances.