When you file for bankruptcy, the automatic stay goes into effect. This is a legal order that stops your creditors from continuing their efforts to collect the debt you owe them. It is your chance for a “breather,” a bit of relief from their collection attempts as you organize your bankruptcy case and begin the process of repaying and discharging your debt.
When you file for bankruptcy, an automatic stay goes into effect. This is a legal order to prohibit your creditors from continuing their collection attempts while you focus on working through the bankruptcy process. Do not assume that the automatic stay means that you are no longer liable for your debts or that your creditors cannot resume their collection attempts. Certain debts are not affected by the automatic stay, and in some cases, creditors for debts that are affected can file for relief from the automatic stay.
Many people who are struggling financially to pay their mortgage, vehicle payments, medical bills and/or credit card debt also end up getting very behind in their utility payments. Disconnect notices from the electric, water, gas and telephone companies fill the mailbox and even payment arrangements become impossible to keep.
A new study from the Woodstock Institute shows that there are many homes across Illinois that have been in the foreclosure process for several years without resolution. In Cook County alone, there are up to 8,000 residential homes that have been in the foreclosure process for three years.
If you have been surprised by unexpected medical bills or lost your job, then you might be in a financial predicament. When you get behind on your bills, creditors will aggressively call for you to pay what you owe. Sometimes, banks and other lenders will threaten to foreclose on your home or garnish your wages. But if saving your home is important to you, it is important to know how filing for bankruptcy may save your house.
While the unemployment rate has been trending downward since the apex in the beginning of 2010, it does not mean that everyone is in a better economic situation. If you are still struggling with a personal financial crisis, then there are certain steps you can take to get back on the right track.
In the course of bankruptcy, consumers are given an avenue to wipe the slate clean. It is a legal status for people who aren’t able to pay for debts that they can’t pay due to medical reasons, unemployment, or a variety of other concerns. There are two options primarily used by consumers to start over, a chapter 7 bankruptcy (liquidation) or chapter 13 bankruptcy (restructure).
Illinois is one of several states in the US that is still experiencing a large amount of foreclosures. The results from October of this year have the foreclosure rate increasing by 6% over September. Compared to October of last year, that rate has increased by 19%.
In Bankruptcy, an automatic stay protects a debtor from creditors. The automatic stay prevents a creditor from collecting on debts incurred by the debtor. The automatic stay is effective immediately upon the filing of the bankruptcy. As soon as the bankruptcy is filed and a case number is obtained, creditors may no longer pursue judgments, garnishments, foreclosure proceeding, or repossessions. Creditors also must cease all phone calls, letters, e-mails, and any other form of communication with the debtor. It is not legal for them to continue attempts to collect on any debts.
With the recession creating financial difficulties for many families, some Illinois residents decide to file for bankruptcy due to sudden loss of income or the potential for their home to foreclose. If you’re bothered d by incessant phone calls and emails from creditors, filing for bankruptcy can be a good option.