While dealing with extended periods of monetary unrest can be stressful enough as is, constant phone calls and letters from creditors may do little to help the situation. Those who worry about how issues with debt might affect their lives may also have questions about the available options to help protect against similar issues. Seeking insight into the protections provided by the automatic stay in bankruptcy could help individuals in Maryland prepare to seek relief from the trials of debt and begin working toward building a brighter financial future.
Types of protection
The automatic stay is an injunction that takes effect immediately once a person files for bankruptcy. This injunction may provide a person with protection against creditors, as these parties may be prohibited from continuing to contact and collect from debtors while the automatic stay remains in place. While in most cases, this protection may persist until the bankruptcy process is finalized, there may be a time limit involved if one files for bankruptcy more than once within a year.
It may be helpful to know that the automatic stay could also provide protection against issues such as foreclosure, motor vehicle repossession, and wage garnishment. The automatic stay may also help protect against an eviction, provided one filed for bankruptcy before receiving a notice of intent to evict. While this injunction may halt collection attempts on most types of debts, there may be certain financial obligations that are not included in this process, such as child or spousal support.
Seeking protection
This may only include a few examples of the protection provided by the automatic stay in bankruptcy. Individuals in Maryland who face dire financial woes and have questions about this process might find it beneficial to consult with an experienced attorney for advice in addressing their situations. An attorney can help a client better understand every aspect of the process, assist in developing a plan to help him or her prepare to pursue relief from the burdens of debt, and provide insight on ways to mitigate the risks of similar issues in the future.