Many people have found themselves, at one time or another, with more debt than they can manage. If you live in Frederick, you might even have friends, family or neighbors who have found themselves in such a position. For some people, a few debt counseling sessions are enough to help them get their finances on track. Others, however, need to utilize other debt reconciliation tools like bankruptcy in order to get their debt under control.

One of the main perks of bankruptcy is the automatic stay. The following benefits of an automatic stay might be just what you need to help you reorder your finances and effectively manage your debt.

Keep the lights on

If you are behind on your utility payments, you may be under threat of a shut-off from the electric company, gas company or the water provider. When you file for bankruptcy and receive an automatic stay, it will buy you at least 20 days of additional utility services so that you catch up with the payments.

Stop foreclosure

Another benefit of an automatic stay is that it can stop foreclosure proceedings. Even if your mortgage lender has already started the foreclosure process, an automatic stay can temporarily suspend it. However, keep in mind that once the court lifts the stay, the bank will probably find a way to restart the proceedings.

Avoid wage garnishments

If creditors are garnishing your wages, an automatic stay can help you bring home your full paycheck once again. While the automatic stay is active, creditors can no longer take a portion of your wages.

Delay conviction

If you are renting and your landlord is trying to evict you for nonpayment, the automatic stay will grant you a temporary reprieve. Unfortunately, if your landlord already has a court judgment against you then the automatic stay will not do you any good. In addition, the automatic stay may only get you a few days or weeks to find another place to live.

If you are suffering from an overwhelming amount of debt, it might be time to consider your options. If you qualify to file for bankruptcy, this might be your best choice to regain control of your finances.