The Automatic Stay - How Bankruptcy Can Help
Burnsville, MN Bankruptcy Lawyer
Wendling Law Office is bankruptcy law firm in Burnsville helping people throughout the Twin Cities get a fresh start. Our clients are very often pleasantly surprised by not only how simple the process of filing bankruptcy can be, but also the amount of protection it offers and the peace that it can immediately restore to your day to day life.
One of the important benefits that comes with the protection offered in the Bankruptcy Code is The Automatic Stay. The Automatic Stay immediately stops almost all collection actions that your creditors are taking against you. That includes utility disconnections, home foreclosure, wage garnishments and more.
If you are behind on your mortgage payments to the point that the bank that holds your mortgage is foreclosing on your home, bankruptcy may be able to help. There are several variables that come into play when discussing bankruptcy and foreclosure, so it is advisable to take advantage of our free initial consultation to understand exactly how bankruptcy applies to your specific situation. If you are planning to keep your home, it is critical that you work with either your bankruptcy attorney or your mortgage lender to ensure that you will be able to. Do not make the assumption that because you have filed bankruptcy that you will be able to stay in your home without making payments indefinitely. Without either catching up on your late payments or a payment plan in place, filing bankruptcy will only delay the foreclosure action.
Collection Calls from Credit Card Companies
If you are behind on your credit card payments, you are very likely getting frequent collection calls from your creditors. This can be embarrassing and frustrating since there is typically little to no communication inside of the collection agency working for the credit card company. This lack of communication often will result in you explaining your entire situation to one collection agent only to receive a call from another agent that same day. The moment that your credit card companies are aware of your bankruptcy filing it is against the law for them to call or contact you in any way.
Collection Calls from Student Loan Companies
While student loan debt is NOT dischargeable under the U.S. Bankruptcy code, student loan collection efforts do cease under the automatic stay. This can be very helpful, especially since student loan companies are very typically some of the most aggressive and frequent callers if you are behind on your payments.
Filing for bankruptcy immediately stops most wage garnishments. This is very helpful to many people since it allows you to take home your full paycheck and get caught up on debts that will not be discharged through your bankruptcy like your mortgage or student loans. If the debt that caused the wage garnishment becomes part of your bankruptcy, then you will not only stop the garnishment, but you will also get rid of the debt that caused the garnishment in the first place.
If you have questions about how filing bankruptcy and the automatic stay will apply to your specific situation, do not hesitate to contact the experienced bankruptcy lawyers at Wendling Law Office. We have meeting locations in Burnsville & Woodbury and offer a free initial consultation to answer any and all questions you may have about the bankruptcy process and how it will effect you.