Clients facing foreclosure or repossession need immediate relief to stop the foreclosure or repossession. When you file a Chapter 7 or 13 bankruptcy, the automatic stay is triggered. This is the immediate relief that is needed in that the automatic stay stop most creditors from continuing with collection activities, such as filing or continuing lawsuits, making written requests for payment, or notifying credit reporting bureaus of unpaid debt. Importantly, it stops foreclosures and repossessions in their track. This can provide a period of relief to debtors as well as the opportunity to a fresh start during bankruptcy. The courts understand how it can be hard to organize your financial affairs with constant creditor harassment. However, there are some exceptions to the automatic stay, so it's important to learn about these before you file.
Actions not stopped by the stay:
- Divorce and Child Support
- Tax Proceedings
- Pension Loans
Some debtors file bankruptcy just to trigger the automatic stay. The debtor might not go through with the bankruptcy if they get their affairs in order. For example, this may happen when a debtor is dealing with a foreclosure sale notice on their home and they may need extra time to gather money or to sell their home in a short sale before it is sold in a trustee sale. Just filing the bankruptcy usually gives the debtor an extra month, at a minimum, to find a solution for their home.
If you are dealing with non-stop creditor harassment or you are facing your home being foreclosed on and you need a solution, we can help! At the Law Offices of Michael H. Raichelson we can help you get creditors off your back and stop home foreclosures. Call us now for your free consultation.