There is commonly a lot of worry, stress, fear and frustration associated with overwhelming debt. One benefit, among many, of personal bankruptcy protections is the automatic stay which helps provide some immediate relief and important protections for filing parties.

How does the automatic stay work?

The automatic stay can help provide some immediate relief for struggling consumers who have filed for bankruptcy. Once they have filed for personal bankruptcy protection, the automatic stay goes into effect which prevents creditor collection actions from proceeding during the bankruptcy process. This can save filing parties from creditor calls and other stressful and unwanted contact.

What can the automatic stay help with?

The automatic stay may be able to help with several immediate concerns filing parties may have including:

  • Stop foreclosure proceedings: The automatic stay can help stop the foreclosure process and the bankruptcy process may be able to provide longer-term relief.
  • Stop eviction proceedings: In some circumstances, the automatic stay may be able to stop the eviction process.
  • Stop utility disconnection: The automatic stay can prevent utilities from being shut off for at least a period of time which is usually 20 days.
  • Stop wage garnishment: The automatic stay can stop wage garnishments during the bankruptcy process and until it is lifted.
  • Stop the government from recovering overpayment and public benefits: The automatic stay can stop these types of government actions until it is lifted.

All personal bankruptcy options come with protections that include the automatic stay. It is well worth it for struggling consumers considering filing for bankruptcy to be familiar with how the automatic stay and the bankruptcy process generally may be able to help them.