A Baltimore bankruptcy, divorce and personal injury attorney with more than 18 years of experience.

Protections provided via the automatic stay in bankruptcy

On Behalf of | May 7, 2023 | Bankruptcy

Times of financial strain can arise under a multitude of scenarios and the stress of dealing with debt might not be the only challenge involved. Those who struggle with high levels of debt may experience various hardships in life and they might not know the available options to help protect their future interests. Bankruptcy is a tool that could help individuals in Georgia pursue much-needed debt relief and the automatic stay is an aspect of bankruptcy that could provide various types of protection. 

The automatic stay 

The automatic stay is a tool that could help provide protection from creditor interactions and this tool may take effect the moment one files for bankruptcy. Those who worry that financial struggles may cause them to lose their homes might benefit from knowing that the automatic stay could help halt foreclosure proceedings or protect against eviction. Experts indicate this tool could also help protect against issues such as utility disconnections. 

Wage garnishment is another common example of an issue one might face when dealing with high levels of debt and the automatic stay may also provide protection from such issues. Creditors may also be prohibited from contacting and harassing debtors who are currently under the protection of the stay. However, the automatic stay might not provide protection from creditor interaction with certain types of debts and there are also some scenarios in which the stay might not persist until a bankruptcy is finalized. 

Evaluating one’s options 

Knowing the protections provided by the automatic stay is just one example of a topic to address when weighing the possibility of pursuing relief through bankruptcy. When facing times of financial unrest, individuals in Georgia who remain uncertain of the best path to take might benefit from consulting with an attorney for guidance in evaluating all their options. An attorney can examine the situation a client is facing, help create a strategy with which to seek much-needed debt relief via the proper paths and guide him or her through every step of the subsequent process.