There are laws and regulations in place to offer relief to those who find themselves overwhelmed by debt and to give them hope that a resolution can be found. These laws also to preclude creditors and debt collectors from acting in a harassing manner toward those indebted to them; however, there are particular parties – such as first party or in-house collectors – exempt from many of these regulations. Though use of obscene language, repetitive calls, or threats are all outside the acceptable realm of conduct, many who have outstanding debts feel harassed by collectors, and often with good reason. At Want A Fresh Start, our compassionate Phoenix bankruptcy lawyers understand the toll harassment from creditors can take on your life and will help you put an end to it.
One of the most efficient ways to resolve creditor harassment is by filing for bankruptcy in Arizona. As soon as the initial petition for bankruptcy is filed and the preliminary procedures have begun, an automatic stay comes into play. This is a court ordered remedy by which collectors are prohibited from harassing or even contacting the debtor. An automatic stay can do much toward reducing the amount of interference from creditors. The following are a few examples of ways an automatic stay gives debtors’ peace of mind while they manage their debts and finances.
Ensuring Your Wages Aren’t Garnished
The threat of wage garnishments is one of the most serious and alarming a collector can make. The idea of a portion of your paycheck being removed before it even transfers to your bank account can leave you feeling powerless, but our skilled Phoenix bankruptcy attorneys can help. When an automatic stay is in place, wage garnishments will be instantly ceased. Your full salary will continually be awarded to you, and you may later qualify to have previous wage garnishments discharged during your bankruptcy.
Preventing the Collection of Overpayments
Overpaid public benefits can go unnoticed. If you have mistakenly spent the excess money you’ve received from the government, generally, you will be asked to repay the difference. Automatic stays prevent those funds from being accessed, allowing you to keep the money you received and the over-payment can be discharged
Foreclosure or repossession of your home is another alarming threat made by creditors. If your home is currently being foreclosed upon or may enter foreclosure soon, it may be a good idea to consider filing for bankruptcy. As soon as the automatic stay is in place, foreclosure proceedings are halted until the end of the process.
Guarding Against Eviction
If your Arizona landlord has not acquired a judgement for possession and you are behind on your rent, beginning bankruptcy proceedings may prevent them from evicting you from your rental. Automatic stays are put in place to protect those in the process of filing for bankruptcy, and one of the ways they do this is by preserving residency. An experienced Phoenix bankruptcy lawyer will be able to provide you with additional information regarding how you can guard yourself against eviction.
Keeping Utilities Connected
Falling behind on utility payments can bring major consequences, among them having your water or electricity shut off. These things can be inconvenient, at best, to very detrimental in your day to day living. Fortunately, the automatic stay is able to come to your aid in this instance, as well. The stay will prevent utility providers from disconnecting services from you due to lack of payment until the proceedings are finished. You will still need to pay future bills, but past delinquencies won’t work against you and are possible debts that can be discharged in your bankruptcy.
Automatic stays in Arizona are not a cure-all for every sort of debt, but they do work in your favor to prevent collectors from contacting you regarding your debts. While the stay is in place, barring a creditor’s Motion to Lift the stay, no creditor or collector will be permitted to contact you concerning what you owe until the proceedings are at an end. By that time, you’ll likely have settled your debts. Contact a Phoenix bankruptcy attorney to learn how an automatic stay can help you, and what the exceptions to an automatic stay are.