Bankruptcy in Houston - the Automatic Stay
Filing a bankruptcy case places what is called an "automatic stay" on any collection activity by creditors or debt collection agencies against the debtor who filed. For Chapter 13 filings, the automatic stay even protects cosigners who are liable along with the debtor for particular loans or debt. An automatic stay will remain in place through the entire bankruptcy process, through the discharge of all eligible debt in a Chapter 7 case and through the entire 3 to 5-year repayment plan for a Chapter 13 case.
Interested in finding out more about how an automatic stay will affect your debt? Talk to a Houston bankruptcy lawyer at our law firm. We will offer you helpful insight into the matter to assist you in determining whether to file, whether you will qualify and what impact this will have on your debt.
Stopping Creditor Contact, Wage Garnishment and More
The automatic stay will protect a debtor from any and all collection activities, including:
- Collection calls or in-person contact by creditors
- Starting or continuing a debt collection lawsuit of any kind
- Wage garnishment
- Levies and liens
Finally, you may be able to breathe a sigh of relief in knowing that the next time the phone rings, it is not a creditor attempting to collect money. This is just the beginning of the many benefits you may experience by filing for bankruptcy.
Houston Bankruptcy Attorney
With a competent attorney by your side, you have the opportunity to experience the full force that an automatic stay will have on your peace of mind. If any creditor or collector does contact you, your lawyer can handle this for you. You can stop worrying about your debt and can start focusing on the future.
Contact a Houston Bankruptcy Attorney at the Malaise Law Firm to see how we can support and guide you.