Overwhelming debt can cause significant problems in many areas of your life. In addition to the stress that you may feel simply trying to stay ahead, you may also experience other types of unpleasant consequences. Some of these may include getting phone calls from debt collectors at all hours and experiencing other types of collection efforts.
Thankfully, there are options available to you. When you can see no way out of your current debt situation, it may be beneficial for you to consider the benefits of bankruptcy. In addition to providing you a way out of outstanding debt and financial problems, it can also put an end to the constant contact and debt collection efforts you are experiencing that can add additional stress to your life.
Benefits of the automatic stay
One of the benefits of filing for bankruptcy is that it will enact the automatic stay. This means that as soon as you file, creditors and debt collectors will not be able to contact you. In addition to getting the phone calls to stop, some of the other benefits to the automatic stay include:
- It can keep a creditor from moving forward with the repossession of your personal vehicle.
- It can keep your utilities on while you follow the terms of your bankruptcy plan.
- It may be able to keep you from facing eviction from your Minnesota rental home.
- It will halt the garnishment of your wages.
- It will stop a foreclosure process that is underway on your home.
- It prevents creditors from attempting to contact you.
While there are significant benefits to the automatic stay, there are limits to what this process can do for you. For example, it cannot protect you against efforts to collect on back taxes or unpaid child support. It also cannot protect you if you are currently facing some type of criminal proceeding.
A better future
One of the benefits of filing for bankruptcy is that it provides you with a way out of your current financial situation. In addition to the automatic stay, you can also discharge certain types of debt or repay debt over an extended period of time in an organized manner.
Bankruptcy may not be your first choice, but in reality, it can be a practical way for you to secure a better future for yourself and your family. If you think this could be a good option for you, it may help to learn more about this process by seeking a complete assessment of your case and explanation of the legal options available to you.