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How Does Automatic Stay Work?

How Does Automatic Stay Work?

: Richard West Law Office

automatic stayWhether you’re trying to prevent foreclosure or get back on track with your mortgage payments, filing for bankruptcy instantly triggers automatic stay. Automatic stay is perhaps the greatest benefit that homeowners have to protect their assets and right to stay in their home. However, automatic stay doesn’t last forever, as creditors can work around this shield. Working with a Dayton bankruptcy lawyer ensures that you can experience the full benefits of automatic stay and that you receive protection as long as possible.

The Benefits and Terms of Automatic Stay

With the help of a bankruptcy lawyer, you can prevent the risk of being evicted and maintain the rights that you deserve. Furthermore, a bankruptcy lawyer can provide continued support against the creditors who will try to continue collecting debts. The incredible benefits of automatic stay include:

Staying in your home. Automatic stay protects you from foreclosure or eviction. This allows you to stay in your home as you and your bankruptcy lawyer work to handle your debt. Since automatic stay doesn’t last forever, it’s crucial to use this time of protection to figure out a long-term solution with your bankruptcy lawyer.

Keeping your resources. If your utility company has threated to disconnect your resources because you’ve fallen behind on payments, automatic stay ensures that you continue getting the electricity, gas, and telephone services that you deserve. Working with a bankruptcy lawyer can ensure that you keep these resources for a minimum of 20 days. While it’s unlikely that a utility bill would cause you to file for bankruptcy, it is a useful tool to ensure your electrical service isn’t cut off.

Stopping wage garnishments. A bankruptcy lawyer can help you stop wage garnishments through automatic stay. This ensures that creditors can no longer touch your paychecks or bank account, thereby ensuring that you have enough money to meet your necessary provisions.

Though automatic stay provides many benefits, they don’t last forever and creditors have legal methods of getting around this protection. Working with your bankruptcy lawyer and taking advantage of automatic stay while it lasts is your best long-term solution.