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Stopping creditors with the automatic stay

When Michigan residents are facing overwhelming debt it can be scary. People may be concerned with how they are going to feed themselves, pay their bills, keep a roof over their head and pay for transportation to work. Creditors can make these fears even worse with their constant calls, threatening letters and legal action. Michigan residents may not know where to turn or how to even begin to get out of debt. People may know that bankruptcy can take months to complete, but need immediate relief.

Thankfully, bankruptcy laws provide immediate relief in the form of the automatic stay. When a bankruptcy petition is filed, the automatic stay goes into effect. The automatic stay automatically stops creditors in their tracks. Once the stay is in place, creditors are no longer allowed to take any action against a person to collect a debt. This powerful tool can give people some much needed breathing room as they sort out their financial issues.

The automatic stay stops a variety of legal action and collection efforts. Once the automatic stay is in effect, evictions proceedings are halted and foreclosure proceedings are temporarily stopped. The automatic stay also prevents utilities from being shut off for around 20 days. Further, when the automatic stay is in effect, wage garnishments stop and the government is unable to take back overpayments of benefits. Creditors must also stop collection efforts including calling a person to obtain payment.

However, some debts are beyond the reach of the automatic stay. The automatic stay will not stop child support payments, tax proceedings or pension loans. Additionally, the automatic stay will not delay legal action in criminal court.

People who are struggling to pay their bills should understand the power of the automatic stay. An attorney can explain the benefits of filing for Chapter 7 bankruptcy.

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    Posted by MaryDecember 11, 2015

    "I am overwhelmed by your response to my call, even 10 years after my bankruptcy was discharged. You have more knowledge and expertise than I could have imagined. Because of you, my fears have been put to rest. For that, I'm so very grateful. Thank you many times over. "

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    Posted by ClientOctober 26, 2010

    "... I was extremely impressed with Charles' understanding of the bankruptcy laws to the extent that I felt certain that my best interests were always at the forefront. "

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    Posted by MarleneJanuary 8, 2014

    He helped me thru my 1st bankruptcy and now the second. I had no idea what to expect , but they kept me informed and answered all my questions. Mr. Schneider is the most experienced and knowledgeable lawyer I have ever met. If you have to file call this attorney first!

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