When you are in debt, it can feel like you’re drowning. However, matters may be made even worse when creditors and third-party debt collectors begin contacting you regarding outstanding balances. In many instances, these communications can border on harassment and leave you with even more stress. Should you choose to pursue bankruptcy to alleviate some of the debt, you’ll find that you will receive protection under the automatic stay. If you’re unfamiliar with the automatic stay and the benefits of this process, you’ll want to continue reading. The following blog explores what you should know about these matters, including the importance of discussing your legal options with Franklin County bankruptcy lawyers.
What Is the Automatic Stay?
The automatic stay is a protection granted to those who file for bankruptcy that requires creditors and debt collectors to cease all debt collection methods until bankruptcy has concluded. This protection goes into effect immediately upon filing, and all creditors and collectors are notified. Not only does this help the filer focus on their bankruptcy case without worrying about lawsuits or harassment, but it also provides benefits for creditors. By halting all collection efforts, one creditor cannot receive an asset before another has the chance to.
As such, the following collection efforts are halted when a debtor files for bankruptcy in Ohio:
- Foreclosures
- Creating or enforcing property liens
- Creating or continuing judgments
- Contacting debtors through text, phone, email, or mail
- Attempting to repossess collateral property
- Wage garnishments
If a creditor violates the automatic stay, you, as the filer, have the right to pursue legal action against them for this violation.
Are Any Debts Exempt From This Protection?
While the automatic stay can help offer several protections to filers, it’s imperative to understand that not all creditors are barred from collection efforts under this provision. Certain debts, such as outstanding child support, alimony, unpaid taxes, or victim restitution from personal injury or criminal cases, may still be pursued by the respective collectors as they do not impact your bankruptcy filing.
You should also note that, in some instances, a creditor may file a motion with the court to lift the automatic stay so they may continue to pursue collection. Generally, this is only granted when the creditor has a claim to a secured property and the bankruptcy process would reduce the asset’s value.
Filing for bankruptcy can be an incredibly complicated legal process. Unfortunately, many are unaware of their rights during this matter, which can lead to continued collection efforts by creditors and errors during the bankruptcy filing that lead to the dismissal of your case. To ensure your rights are protected and you can pursue bankruptcy as effectively as possible, it’s in your best interest to work with an experienced attorney with Cousino & Weinzimmer LLC. Our team understands that debt can drastically impact your life, which is why we are committed to helping you reap the benefits of bankruptcy. Contact us today to discuss your circumstances with our dedicated legal team.
