The Perks of the Automatic Stay
A financial crisis can knock on your door anytime without notice. In situations when families or individuals are under a lot of debt, they are left with very little options. Some people get notices of foreclosure from creditors and some people lose their cars. The most stressful time hits when you find that your property or your car is going to be taken away from you. For people with families, it is a tough time and dealing with it seems impossible.
Filing For Bankruptcy Can Save You!
Not many people know that filing for bankruptcy can save their homes and save them from a foreclosure, repossession, and seizing of assets. You can take help from Biloxi Bankruptcy Lawyer’s Chris Davis who will help you with the details of an automatic stay. Your automatic stay will be valid as soon as you file for bankruptcy. This will help you keep your house and car safe from the creditors.
According to the bankruptcy law, a creditor cannot collect any of your valuables in place of the debt you owe. Though there are some types of things that do not come under automatic stay and the creditor may collect such things.
How It Works?
Once you have filed for bankruptcy, the court will send out a notice to all the authorities that you are under automatic stay. This will enable you to keep the things that can be collected by the creditors.
If you are behind on your secured debts, the creditors have a right to get your automatic stay lifted. This way your property can be repossessed by the creditors but if you negotiate and make a deal with your creditor to pay off the secured debt, you can continue with the automatic stay.
Violation Of The Automatic Stay
In case of violation of the automatic stay from the creditors, you can file a lawsuit against them. The case works on the condition if the creditors refuse to return your property or assets. Take help from a bankruptcy lawyer that will guide you through the process. The court can penalize creditors if they refuse to give back the assets. You will not incur any loss if the creditors violate the automatic stay. The court will provide you with the money to fill your damages and will also pay for the attorney’s fees.
Get Help From A Professional
Dealing with the process of bankruptcy and the automatic stay can be really confusing. Many people miss out the basics and get themselves in trouble. The best way to get through the process easily is to hire a bankruptcy lawyer. We can help you learn about the laws and rules so that you can maximize your benefits. An automatic stay will stop the creditors from seizing your property but make sure you stay honest with the court. If you lie or hide vital information from the court then the court has the right to lift the automatic stay.