The Immediate Relief of the Bankruptcy Stay

If you’re considering bankruptcy, it is very likely you have received correspondence and phone calls from creditors. Creditor calls and never-ending threatening letters in the mail make your debt always on your mind. A recent study reported by Global Citizen in the article “This is Your Brain on Poverty: 5 Facts,” shows how constantly being reminded, let alone harassed, of your overdue bills will “impact your cognition or dramatically increase your stress level.” For families who were already struggling paycheck to paycheck, one medical bill or car repair can snowball into overwhelming debt. The anxiety and financial stress impacts every member of the family, especially when your resources are stretched so thin that affording necessities such as food and shelter are threatened.

One of the most significant benefits from filing a bankruptcy case is the immediate protection from collection attempts. This is called the automatic stay. Once a case is filed, creditors must immediately cease all contact. In practice, although the stay is automatic, creditors do not receive notice for a few days. So once a case is filed, if a creditor contacts you simply tell them you are in bankruptcy and provide your case number, and they must back off. A creditor, usually a secured creditor such as a car loan, can ask the Court’s permission to continue to collect despite the bankruptcy. And there are some creditors that can continue to collect from you, such as child support recipients. Domestic support obligations, along with most income taxes and student loans, generally do not go away from after the bankruptcy. But for the majority of those overwhelming bills, bankruptcy will provide the discharge you need to start over.

The ability to hit the restart button, put the money coming in to current and future expenses and not worry about the past, is why bankruptcy exists. When it’s the right choice, bankruptcy can be a positive, life-changing decision for you and your family. The choice not only helps your financial life, but it can dramatically improve your stress level and overall health, just by the relief and breathing room it provides.

At the successful conclusion of their bankruptcy cases, our clients are generally “debt free” and enjoy a renewed sense of self-worth. Let us help you too. It costs nothing to find out if we can help you and if you qualify, you will not have to pay anything for our services.

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