Throughout Mississippi, there are many families and individuals experiencing financial crises. Some of these situations are disrupting savings or causing stress but are resolvable with a few minor adjustments, such as cutting spending or taking on a second job for more income. Others, however, are in over their heads and are considering filing for bankruptcy to help alleviate debt and to stop certain actions.
For instance, some people are worried about losing their homes in foreclosure. Others are being hounded by collection agencies. There are also people who are worried that they will have no transportation if their vehicle is repossessed. Many people are struggling to make ends meet for food, clothing and shelter.
An automatic stay in bankruptcy can help avoid foreclosure and more
Most bankruptcy petitions fall under two programs: Chapter 7 and Chapter 13. In either case, an automatic stay is created when bankruptcy occurs. The following list includes six actions that must cease when an automatic stay is in place:
- Lenders may not foreclose on a home.
- No one can repossess a petitioner’s vehicle.
- The government cannot garnish the person’s wages.
- Collection agencies must stop calling.
- A landlord may not evict a tenant who has filed for bankruptcy.
- A petitioner cannot be sued for debt collection.
Unless and until the judge overseeing your bankruptcy petition closes your case, the automatic stay remains in effect. This could mean several years.
Bankruptcy helps wipe a financial slate clean
There is no shame in reaching out for additional support when a financial crisis hits hard. One of the first steps a person can take is to request a meeting with a bankruptcy law attorney. An attorney can carefully review a particular case and recommend which bankruptcy program would best fit a client’s needs and ultimate financial goals.