It's not easy for a person to make the choice to file for bankruptcy. It can feel embarrassing to take this step for some, while others may feel like they will never be able to get back on their feet if they move forward with this. In reality, bankruptcy protection can offer many benefits to overwhelmed consumers like yourself.
One of these benefits is protection from creditors and debt collectors. One of the most stressful aspects of having an overwhelming debt burden is the fact that you may get phone calls all the time, bills in the mail every day and threats of losing your personal property if you don't pay. You may already feel like you'll never be able to find stability again, and this treatment can only make you feel worse. Thankfully, there are things you can do to put a stop to it.
Make the contact stop
Filing for bankruptcy protection will enact the automatic stay. This goes in effect when you file, and it means that creditors and debt collectors can no longer call you and try to contact you. It also halts various types of processes that could have a negative effect on you. While there are many practical benefits to the automatic stay, you may especially enjoy the peace of mind that comes with knowing that the threats of collection are no longer hanging over your head.
The automatic stay means that you will no longer get those annoying phone calls, but you will also be able to keep your paycheck. Wage garnishment will stop, as well as repossession and foreclosure processes in action against you. It could mean that you can keep your utilities on and stop the threat of eviction, depending on your individual situation.
Limits to the automatic stay
The automatic stay cannot help with every type of balance and debt you may have. For example, it cannot protect you from proceedings related to past-due child support or tax debt. It also cannot prevent or halt any type of criminal proceeding in which you are involved.
A better future
Through bankruptcy, you may be able to secure a better financial future. Depending on which chapter you file, you can deal with types of unsecured and secured debt, eventually emerging from the process with your well-being and opportunities intact. Speaking with an experienced California bankruptcy attorney can help you see if this is the right way forward for you.