Many people who have found themselves drowning in debt have turned to bankruptcy. It is no secret that bankruptcy has many benefits, the most appealing is that you will have your debts cleared. Your debts being erased is a huge plus to filing bankruptcy, but one advantage to filing bankruptcy that people can appreciate long before they can be sure they no longer owe their creditors is an automatic stay.
When you file a petition with the bankruptcy court, many of the collections actions against you and your property will cease. For example, your creditors cannot initiate a lawsuit, garnish your wages or even contact you once you have filed your petition. Some stays may only last for a brief period, so people should be sure they make a note of how long the stay will last and be prepared for action to be taken against them once the stay is no longer in effect.
If you do get to reap the benefits of an automatic stay, you will not be responsible for contacting your creditors. Those who have started the filing process for Chapter 7 will have submitted information about their creditors and how much they owe to each party. This information is used by the bankruptcy clerk to reach out to your creditors to inform them that you have filed for bankruptcy.
Debt relief is the goal for a lot of people dealing with financial challenges. Although it may be hard to believe there is a way out, you do have options you can take advantage of if you have grown tired of watching your debt grow. If you decide Chapter 7 may be the solution to your financial problems, speaking with an attorney would be helpful.