Many people in Kentucky struggle when they start to fall behind on their bills, and if you include yourself among them, you may be seeking a way to get some financial relief. When creditors start harassing you at home, at work or both, it may result in you experiencing anxiety and stress. However, filing for bankruptcy typically gives you some relief from creditor harassment, because once you open a bankruptcy case, something called the automatic stay takes effect.
According to LendingTree, once you file for bankruptcy, the bankruptcy court issues the automatic stay, and your creditors become unable to contact you for a period in their efforts to collect what you owe them. While the automatic stay does not absolve you from making all payments, it does offer temporary relief in the following areas, among others.
Protection from eviction or foreclosure
In most cases, bankruptcy’s automatic stay is going to halt any foreclosure or eviction proceedings that are in the works against you. However, there are a few exceptions. For example, if a creditor has already foreclosed on your home, that creditor may ask to have the automatic stay lifted to keep the foreclosure moving forward.
Protection against utility disconnections
Having your power or utility companies threaten to shut off your electricity or other services may have you feeling understandable anxiety. However, filing for bankruptcy and initiating the automatic stay period puts a stop to these disconnections.
Bankruptcy’s automatic stay also gives you temporary relief when it comes to wage garnishment and creditor harassment. However, it is not going to affect any child support or alimony payments you have a legal obligation to make.