Individuals confronted with substantial debts know all too well the constant stress caused by never-ending phone calls from debt collectors demanding payments and the torrent of mail threatening legal action in order to collect a debt. These continual collection efforts are often overwhelming for those struggling to find a way out of debt, particularly when the amount of money demanded is often impossible for a debtor to meet. A debtor who has filed a petition for Chapter 7 bankruptcy can stop the onslaught of collection phone calls and legal action through one of the benefits of bankruptcy, a process known as an automatic stay. The automatic stay is an injunction that puts an immediate halt to harassing collection actions, including any pending lawsuit against the debtor. In most cases, the automatic stay becomes an effective tool to assist a debtor in carefully working to rebuild their financial future. In addition to stopping collection calls, demand letters and legal action, the automatic stay also prevents creditors from seeking wage garnishments, foreclosing on a real estate owned by the debtor, and efforts to repossess the debtor’s personal property. The automatic stay does not prevent collection of debts forever, but it does provide a debtor with much needed breathing room, and protects a debtor’s assets, while they can figure out how to move forward with their finances. If you are the recipient of unending collections calls or legal action or have questions about bankruptcy, including the benefits of the automatic stay, please contact Attorney Kayla E. Boehlen at 413-730-4455 or kayla@law-eb.com for a free initial consultation.
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