Because of the financial strain Covid 19 has put on so many people, the Law Firm of William H. Lively, Jr. is lowering the up front costs for filing Chapter 13 bankruptcy cases for new clients. If you need to file a Chapter 13 bankruptcy and cannot come up with a large down payment to hire an attorney, contact our office–we can help get you protected for less.

How bankruptcy’s automatic stay offers relief from creditors

Having creditors track you down at your Texas home or place of business may prove frustrating and even embarrassing. However, in some cases, filing for bankruptcy might help you get relief from these communications while also helping you get your finances back on track.

Per LendingTree, once you begin the official bankruptcy process, something called the automatic stay period kicks into play. During the automatic stay period, which typically lasts the duration of your active bankruptcy case, certain creditors have to stop calling and contacting you about debts owed to them. Bankruptcy’s automatic stay gives you at least temporary relief from the following.

Landlords

Unless your landlord is in the process of evicting you and already has an eviction judgment, bankruptcy’s automatic stay puts a stop to most evictions. However, the landlord may be able to request that a court lift the stay if you remain behind on your payments.

Credit card companies

Credit card companies may no longer harass you in their attempts to collect what you owe while the automatic stay period remains in effect.

Wage garnishments

Losing some of your paychecks to wage garnishment may make it difficult or impossible to keep up with your bills. During the automatic stay period, wage garnishments stop, allowing you to collect your full paycheck while the stay remains in effect.

While bankruptcy’s automatic stay gives you temporary relief from creditors in these and several other areas, it does not necessarily end all your debt obligations. For example, if you pay child or spousal support, you must continue to do so despite the stay.