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When you file a Chapter 13, an automatic stay kicks in. What's an automatic stay? It refers to the part of bankruptcy law which protects you from the actions of your creditors. They cannot ship you letters, call you, threaten your property, foreclose or repossess, or garnish your wages with very few exceptions. After you've filed a Chapter 13, your creditors are playing on your turf.
As you can inform, the automatic stay is a terribly powerful part of bankruptcy law and provides you and your circle of relatives with immediate upkeep. I'm sure you can agree that getting upkeep from foreclosure and creditor calls while also getting credit card debt lend a hand and relief from your bills is invaluable.
But now that you know how it works, you might also be wondering why it was created. The intention of a Chapter 13 is to create a payment plan that will lend a hand you get peace of mind, appease your creditors, and free you from the prison that debt can create. In order to do that, you must have the distance from your creditors for you and your bankruptcy attorney to create a coherent plan. Without that freedom, you'd never have the time or peace to develop a coherent enough plan.
When you are not up to crushing amounts of debt, your creditors have all the pressure over you. It feels as though you'll never be capable to fight back against their constant calls and threats. However, when you file a Chapter 13, suddenly the pressure is back in your handsand there isn't much a creditor can do about it.
A creditor might also try to convince you that he or she doesn't have to conform with the automatic stay or that they are above the law. The truth is that no bank, credit card debt collector, car lender, or mortgage lender can refuse to recognize it. They quite simply don't have a desire.
A bankruptcy attorney can lend a hand you understand the pressure of bankruptcy and harness it to improve your life. Never underestimate how much upkeep from foreclosure, debt, and your creditors can switch your life. If you still aren't sure if bankruptcy is right for you, begin researching the options that are available to you. Find free articles, blogs, and even free programs. Remember, many legal professionals will offer a free consultation, but the best bankruptcy legal professionals will educate you with free information before you even set foot in an office.
