Bankruptcy Is Best Because of the Automatic Stay
"No other method of debt elimination includes the automatic postponement as does bankruptcy. The automatic stay goes into effect upon the filing of a bankruptcy petition, halting all collection efforts against the debtor. When a person files for bankruptcy, they are required to complete the bankruptcy petition, which contains numerous schedules. One of the schedules will contain a list of all of the bankruptcy petitioner's creditors. The individual registering for bankruptcy is required to submit a list of current creditor addresses so the court can notify the creditors of the impending bankruptcy. Typically, it takes a couple of weeks for the creditors to be notified; however, if a creditor calls, all the individual needs to do is provide the case number, and the creditor will cease calling once they are aware that the automatic stay is in effect.The automatic stay is so effective that it halts not only collection efforts but also foreclosures, litigation, judgments, and wage garnishments. It is preferable for an individual to file bankruptcy prior to being sued by creditors; however, if this occurs, the lawsuit will promptly cease. This is excellent news for someone who is being relentlessly pursued by creditors. Numerous individuals file for bankruptcy because they can no longer endure the incessant calls from creditors. The debtor may take legal action against creditors who consider it necessary to continue harassing the debtor. The bankruptcy court will sanction at least some of the creditor's actions. For flagrant violators, the bankruptcy attorney may seek legal fees and compensation for damages sustained as a result of their harassment.Today, creditors are employing increasingly aggressive debt collection strategies. As a result, many individuals are forced into bankruptcy because they cannot withstand the relentless harassment of creditors. Numerous creditors are second-generation debt holders who acquired the debt at a discount. They have nothing to lose and everything to gain, so they press the limits to the extreme. Numerous individuals who ultimately file for bankruptcy are pushed over the brink by one of these aggressive creditors who refuse to stop calling. Even though they are breaking numerous laws, the majority of people become so defeated that they stop answering the phone. For the majority of individuals registering for bankruptcy, the automatic stay is a savior that enables them to resume living and answering the phone.As long as the real estate market remains stagnant, we can anticipate an increase in future foreclosures. If they could eliminate their other unsecured debts, a significant number of individuals would be able to avoid foreclosure on their residence. Due to this, Chapter 13 bankruptcy has gained new popularity among debtors. The positive news is that whether Chapter 7 or Chapter 13 is filed, both have access to the automatic stay.
" - https://www.affordablecebu.com/
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"Bankruptcy Is Best Because of the Automatic Stay"
was written by Mary
under the Finance / Wealth
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comments. The article was created on 31 May 2023
and updated on 31 May 2023