When you are in serious debt, it can seem like a never-ending nightmare. Creditors call you multiple times a day and send threatening letters in the mail. They even call you at work, which can certainly be humiliating. The last thing you want is for your boss or co-workers to know all about your personal business. When considering your debt relief options, remember that a bankruptcy automatic stay helps you deal with creditors. That means they must stop contacting you as soon as they receive notification of your bankruptcy filing.
What the Automatic Stay Does and Does Not Cover
The automatic stay goes into effect as soon as you file your bankruptcy paperwork at your county courthouse. However, there may be a small delay between the filing and when your creditors receive notice of your pending bankruptcy. If creditors contact you at this time, you should refer them to your attorney.
After the automatic stay goes into effect, creditors can't call, write, or contact you in any way about settling your debts. This remains in effect until your debts are cancelled with Chapter 7 bankruptcy or until you have completed your repayment plan with Chapter 13 bankruptcy.
There are some exceptions to the automatic stay, including:
- Past due child support obligations
- Criminal cases
- Student loan debt
- Debt you incur after filing bankruptcy
Learn More About Bankruptcy Protection
The Law Offices of James C. Shields works with people just like you who find themselves with no way to pay their overwhelming debt. We understand that bad things happen to good people, such as job loss, divorce, or a medical crisis. You are invited to contact us to learn more about the legal protection afforded to you when you file for bankruptcy. Our Torrance bankruptcy law firm offers reasonable fees and gives you the option of making equal monthly payments for our services.