If you’re thinking about filing for bankruptcy due to overwhelming debt, you already know that the idea can be scary. However, there are some real benefits to filing for bankruptcy if you’re being hounded by creditors and you just cannot pay the bills. Stop Repossession Melville. Depending upon which type of bankruptcy you choose, you may be able to negotiate a payment plan with creditors to keep most of your assets, or you can start over with a clean slate and have your debts discharged. Consulting with a skilled New York state bankruptcy lawyer is a smart thing to do because this lawyer can help you decide which bankruptcy option is most financially beneficial for your unique circumstances.
What an Automatic Stay Can Do
Filing for bankruptcy triggers what is known as an “automatic stay”. Stop Collections Lindenhurst. The automatic stay is a legal action that stops all actions taken by your creditors to collect payments. An automatic stay can prevent utility companies from disconnecting your utilities, stops all garnishments of wages, and can temporarily halt an eviction. For homeowners, it can also stop foreclosure proceedings. If creditors continue to harass you with letters and phone calls, you can refer them to your lawyer.
What an Automatic Stay Cannot Do
An automatic stay from filing bankruptcy cannot cancel your obligation to make child support or alimony payments. It also does not cancel any financial criminal penalties with which you are served. Stop Repossession. Automatic stays also cannot stop creditors from withholding income from many types of pensions, and they cannot help you if you owe tax money to the IRS. A creditor may also file a motion to lift an automatic stay, which means that, if the motion is granted, they may continue trying to collect the debt.
Call to Schedule a Free Consultation With a New York State Bankruptcy Lawyer Today
If you want to learn more about bankruptcy, call to schedule a free consultation with a Long Island bankruptcy lawyer today. At the Law Offices of Scott R. Schneider, we will treat you with respect and compassion. We serve the towns of Long Island, Melville, Lindenhurst and surrounding Nassau and Suffolk County communities. Visit our website at https://nassaubankruptcyattorney.com or call us at (516) 433-1555 . Our friendly staff are happy to answer any questions you may have.
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