What Does an Automatic Stay Mean?

There are few things more frightening than the prospect of losing your house. If you are in jeopardy of losing your home due to an inability to pay off various debts, read on and reach out to our experienced Rockland County bankruptcy attorney to learn more about the automatic stay and how it can help you keep your home. Here are some of the questions you may have:

What is an automatic stay?

When an individual files bankruptcy, an automatic stay will go into effect. For many people, this is the sole reason they file bankruptcy. Essentially, the automatic stay halts all collection activities. The most commonly-feared collection activities include repossessions, intrusive and persistent phone calls, wage garnishments, and even home foreclosures. Fortunately, when you file bankruptcy, the automatic stay prevents all lenders and creditors from foreclosing on your home, meaning yes–you can keep your home, even if you file the day of foreclosure. There are few things more frightening than the all-too-real threat of losing your home, and our firm understands this. That is why we are here to help you through every step of the bankruptcy process, which, we are happy to say, starts with an automatic stay.

Which type of bankruptcy should I file for?

There are two primary types of bankruptcy individuals file for–Chapter 7 and Chapter 13. Both are great options for debtors, depending on their situation. Essentially, in Chapter 7 bankruptcy, debts such as medical bills, personal debts, credit card debts, and more will be fully discharged, and you will no longer have to worry about that debt. That being said, however, there are certain nondischargeable debts, including child support or alimony payments, money you owe for lawsuits, and, in most cases, college student debt. To file for Chapter 7, you will have to prove that your family income is less than the average family income in your county and that you can no longer pay off your debts.

Chapter 13 bankruptcy is more for individuals with assets valued at more than the average family income in their county, and the process itself is structured a bit differently. In Chapter 13 bankruptcy, you will establish a 3-to-5-year plan with the Bankruptcy Court, wherein you will pay off your debt at a rate that your income and daily expenses allow.

Contact our experienced New York bankruptcy attorney

Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.