When an individual is faced with mounting debt, they may begin to feel the pressure of debt collectors and lenders who are trying to recover payments. Of course, these calls and letters can be very overwhelming, especially if the debtor feels as though they will never be able to make the payments owed. For many individuals faced with this situation, bankruptcy may be a light at the end of the tunnel. As soon as a debtor files for bankruptcy, an Automatic Stay is put in place. The Automatic Stay protects debtors from creditors and other collection agencies.
This requires all creditors and debt collectors to stop contacting the debtor immediately. It will stop all phone calls, lawsuits, foreclosure actions, and other methods of collection. Many individuals who file for bankruptcy find this to be a very welcome break from harassing phone calls at home or work. The automatic stay allows an individual to take some time to regroup and work with an attorney to begin the process of debt relief. It is important to note that the automatic stay is put into place from the minute bankruptcy is filed until the end of the proceedings.
If you are feeling overwhelmed by debt and collectors, contact our firm today to see how bankruptcy can benefit you.
Matters related to bankruptcy and estate planning are very significant in one’s life and require the services of an experienced attorney. Our firm proudly serves clients throughout Rockland County and New York State. If you need effective legal guidance, contact Koplen Law today to schedule a consultation.