Automatic Stay in Brevard County
Our Brevard County Bankruptcy Attorneys Discuss the Benefits
There are a number of benefits to declaring bankruptcy which are designed
to let you reorganize and rebuild yourself financially and slowly get
back on the path to financial freedom by eliminating your debt. One of
these benefits is an “automatic stay,” which goes into effect
as soon as you file for bankruptcy. An automatic stay is an injunction
which halts all debt collection actions by creditors (with a few rare
exceptions). This gives you the opportunity to reorganize your finances
and get on the road to debt freedom without having to constantly deal
with relentless debt collectors.
What Can an Automatic Stay Prevent?
An automatic stay can prevent a number of negative consequences of debt
from occurring, allowing you to keep as much of your life in place as
possible while you begin down the path to freedom from your crippling debt.
If you fall behind on your utility bills, such as your gas, electricity,
or water, your utility company may threaten to shut off your service.
An automatic stay prevents this shutoff for at least 20 days. If you’re
filing bankruptcy in the middle of a hot, humid Florida summer, being
able to keep your air conditioner running can be a huge help.
If you’re being threatened with foreclosure or your loan company
has begun the foreclosure process, an automatic stay will put the process
on pause for a little while. It doesn’t get rid of the issue permanently,
but this gives you a window of opportunity to catch up on your payments,
which would put a permanent stop to the foreclosure process.
If you are being evicted from your apartment or residence, an automatic
stay can buy you a little bit of extra time to resolve your issues with
your landlord. However, landlords can often find ways of having the stay
lifted. At most an automatic stay will buy you a couple of days. However,
this could give you the opportunity to smooth things over with your landlord
and catch up on rent payments, which may be enough for your landlord to
give you another chance.
Some creditors who file legal action against you can place a wage garnishment
against you, which automatically intercepts a portion of your paycheck
and applies it towards your outstanding debt. Obtaining an automatic stay
automatically stops any wage garnishments, which means you receive your
full paycheck and gives you the ability to discharge some of your debts.
This also gives you the ability to decide how you want to pay off your
debts using the entirety of your income.
Collection of Overpayments on Public Benefits
If you receive public benefits and were overpaid, the agency that overpaid
your benefits is normally entitled to attempt to collect the overpayment
out of your future benefit checks. However, an automatic stay prevents
this from happening, meaning you’ll receive all future benefit checks
in full. However, you may still be ruled ineligible or become disqualified
from future benefits while under an automatic stay.
Retain an Attorney
If you need assistance with the bankruptcy process, it’s important
to discuss your options with a Brevard County bankruptcy attorney from the
Buchalter Law Group. We offer more than 35 years of experience in practicing bankruptcy law,
and our team is dedicated to your success. We strive to help each of our
clients reach their goals of financial freedom, and we can help you develop
an individually tailored plan that will get you back to financial independence
while minimizing the hurdles you must overcome to get there. Speak with
our attorneys today to discuss your case further.
For quality counsel throughout your bankruptcy case, call the Buchalter
Law Group today by dialing (321) 320-6088 and ask to receive a
free case evaluation.