Most often individuals enter into a bankruptcy because they are being threatened with legal action from their creditors. They may be at risk of losing their home, or having their vehicle repossessed. Once the financial problems get to this point then the individual has to take action quickly to stop the legal proceedings.
Sometimes individuals are at risk of having their utilities disconnected. This can be devastating for a family to even think of not having their utilities. Once the automatic stay has been put in place it can usually stop the disconnections for at least 20 days.
If you are facing an eviction then the automatic stay will buy some time. In some cases property owners are able to find ways to get past the automatic stay. It may give you a few days or maybe a week or two to get your finances in shape so you can deal with your past rent.
If your home ownership is at risk the automatic stay may help to stall the foreclosure. In the end though, if you want to keep your home you may have to go through the Chapter 13 Bankruptcy in order to do this.
Individuals that are in financial difficulty to the point where they need to take advantage of bankruptcy relief are often faced with many different challenges and are constantly having to deal with creditors. This form of financial relief may be the best solution depending on the circumstance.
The first step is to contact a qualified Louisville bankruptcy attorney. This professional will know exactly what steps have to be taken to start the bankruptcy so an automatic stay can be started.