If you count yourself among the many residents of Virginia who are currently grappling with increasing debt, you may be spending your days avoiding answering your phone or otherwise dodging creditors. Having creditors continuously come after you in their attempts to collect on their debts can prove extremely stressful, but you may be able to put a stop to these excessive communications by initiating the bankruptcy process.
According to LendingTree, once you formally file for bankruptcy, the court will issue an order known as an automatic stay. While temporary in nature, the automatic stay is essentially a period in which most creditors can no longer attempt to get money out of you while your bankruptcy case is ongoing. In most cases, the automatic stay period ends either when your bankruptcy case closes or when your debts undergo discharge.
So, what types of things can the automatic stay prevent? In addition to keeping most creditors from contacting you at work or at home, bankruptcy’s automatic stay will also put a stop to any wage garnishments that may currently affect you. If your utility company is threatening to disconnect your services, it also may not do so while bankruptcy’s automatic stay period is in effect.
If you have concerns about eviction or foreclosure, you may also find some relief during bankruptcy’s automatic stay. If your creditor has begun foreclosure proceedings against you, the automatic stay should put a halt to them. Similarly, if your landlord has tried to evict you, but he or she does not yet have an eviction judgment in his or her possession, the automatic stay will typically halt the eviction process.
This copy is meant for educational purposes and is not a substitute for legal advice.