Repossession and Garnishment
Bankruptcy Can Stop Repossession and Garnishment
Most people considering bankruptcy have made a serious effort to reclaim control of their finances. Many have spent months juggling bills, taking small steps forward only to encounter new setbacks. Garnishment or repossession can destroy that delicate balance, making it impossible to regain your footing.
The Automatic Stay in Bankruptcy
In most bankruptcy cases, an automatic stay is entered as soon as the petition is filed. The stay is a court order that stops collection action. Most creditors and debt collectors are prohibited from taking actions such as:
- Making collection calls
- Sending collection letters
- Filing lawsuits
- Garnishing wages
- Repossessing vehicles and other property
- Disconnecting utilities
- Commencing or moving forward with an eviction based on non-payment
- Commencing mortgage foreclosure actions
- Proceeding with a foreclosure sale
What many people don’t realize is that the automatic stay can stop this type of activity even if it is already underway.
Bankruptcy and Wage Garnishment
Wage garnishment can be devastating to a family already facing financial difficulties. The loss of a significant portion of regular income means less flexibility to pay other bills and less freedom to prioritize. For many people, garnishment is the tipping point that leads to considering bankruptcy.
The automatic stay can immediately stop wage garnishment even if the order has already been entered and withholding has already begun. And, that’s only the first step. If the garnishment is for a dischargeable debt like credit card debt, medical bills or a payday loan, the debt itself can be wiped out in bankruptcy.
If your wages are being garnished and you’re considering bankruptcy, schedule a free consultation right now. The sooner you get the process started, the sooner you may be able to stop wage garnishment.
Bankruptcy and Repossession
Most people depend on their cars to get to work. That means vehicle repossession can interrupt a family’s income or add transportation costs to a budget that is already stretched to the breaking point. Fortunately, the automatic stay in bankruptcy can stop repossession.
Although the automatic stay provides only temporary relief, it allows time to come to a resolution that will allow you to keep or replace your vehicle. Depending on the age of your car, the amount of remaining debt and the type of bankruptcy case, the options may differ.
If you’ve fallen behind on car, truck of van payments and are facing repossession, schedule an appointment for a free consultation right away.
Bankruptcy Can Restore Control Over Your Financial Life
Whether you’re facing repossession, your wages are being garnished or you simply can’t regain control of your finances and are ready for a fresh start, scheduling a free consultation with bankruptcy attorney Sara Rogers may be the first step toward the fresh start you’re looking for.
Make the call or request a free consultation online right now and sleep better tonight.