Are you overwhelmed by bills? Do you feel even more overwhelmed by creditors contacting you and demanding payments? So you have are considering bankruptcy, you are doing research, consulting a bankruptcy attorney… now what? As you contemplate which type of bankruptcy is right for you, you might consider ‘what happens after I file?’ Right now, “after” seems like a gray, foggy area you have not yet explored. As you struggle daily with bills and creditors, it is genuinely hard to imagine life after these things. But, after you choose to file for bankruptcy, there is a grace period of sorts.
What happens after you file for bankruptcy?
After you file for bankruptcy, you are placed in what is called an automatic stay. What does this mean for you? This means that while your papers and case are being processed, none of your creditors can contact you in any way to demand money. When you file for bankruptcy most of your creditors, including medical and credit card creditors are no longer legally able to try to collect money from you. If you have been struggling with stressful calls and visits from creditors, this stay will be like a welcomed vacation for you. For example, you might have substantial credit card debt. You are receiving daily calls from the company demanding money and threatening to take legal action. You might even have to deal with creditors making in-person visits. What the automatic stay means to you is that this harassing stops. Once you file for bankruptcy, they are legally no longer able to harass you or demand payment in any way.
In addition to stopping creditors from contacting you, the automatic stay temporarily stops foreclosures. When you file for bankruptcy, this process can be stopped, and can only be restarted if the lender petitions the court and asks for the stay to be lifted in this area. One thing to note in this area is that if you intend to keep possessions, like a house, land, or a car, you will need to continue payments on these items. For more information about your options, you should consult a bankruptcy attorney. As a bankruptcy attorney, they are qualified to explain all your options.
How filing affects benefits and services
Public benefits, like Social Security Insurance, Medicaid and Welfare cannot collect overpayments by reducing or ending benefits during the automatic stay. For example, if you were paid too much in benefits, the government is not allowed to try to collect their overpayment by reducing your current benefits. Utilities, such as water and electric, must continue providing services for twenty days after you file for bankruptcy. This means that you will be able to retain you necessary services for twenty days after you file, this gives you time to accumulate money to pay for continued services. Additionally, the IRS is able to continue some activities but they are no longer able to seize any of your property or income while you are in the automatic stay.
This process is very complicated and it is incredibly important for you to know all about the benefits and drawbacks before filing for bankruptcy. With so many options available, it is crucial for you to find a competent bankruptcy attorney to help you navigate. Bankruptcy attorneys are specially trained and experienced to make your choices about bankruptcy clear. Rather than struggling with process on your own, consider consulting an experienced and dedicated bankruptcy attorney at Imblum Law. Let a bankruptcy attorney explain the process to you!