How Does Bankruptcy Stop Creditors in New York City?

The “Automatic Stay” is a powerful provision of bankruptcy law that will immediately stop any lawsuit against you and will put an end to any collections actions from your creditors including wage garnishment, car repossession and home foreclosure. The “automatic stay” is the driving force behind bankruptcy protection in New York City and part of what gives the bankruptcy process its teeth.

Bankruptcy can save the day for many different financial emergencies, and only an act of Congress can change the US Bankruptcy code. In New York City one of the most common problems people solve with bankruptcy is home foreclosures and evictions. If your home is being foreclosed upon the “automatic stay” will halt the foreclosure proceeding temporarily. Depending on your goals bankruptcy can also save your home permanently by allowing you to catch up on your overdue mortgage payments over a period of 3-5 years. Bankruptcy will even eliminate second mortgages and will discharge the other toxic debts that were preventing you from making your mortgage. Eviction can also be avoided through bankruptcy, but if you are not paying your rent it’s important to speak to an attorney right away. Once a landlord has a judgment against you the problem will be harder to solve, but not impossible with the “automatic stay”.

The “automatic stay” can also prevent utility companies from disconnecting your water, gas, electric or even telephone and internet services. Credit card companies and other toxic lenders won’t be allowed to harass you, and will be barred from any further communication with you including phone calls, emails or letters. Bankruptcy and the “automatic stay” will stop wage garnishment instantly, and will allow you to discharge the entire debt your creditors were garnishing you for in the first place. Bankruptcy can also prevent car repossession or even help you get your car back, and can also help you repay child support or alimony back payments in a more manageable fashion.

The “Automatic Stay” can’t help with everything, and there are ways for certain creditors to lift the “automatic stay.” Every situation is different. Bankruptcy is not for everyone, like anything there are pros and cons to your decision to file. Rest assured however if you are in true need of financial relief and struggling to make ends meet you will qualify for bankruptcy protection. To get the most out of the protection work with a qualified attorney experienced with both Chapter 7 and Chapter 13 filings as well as converting between the two. If you are underwater on your bills or have encountered a recent financial crisis it would be smart to start thinking about your rights as a consumer in New York City. Knowledge is power and free advice can’t hurt. Most people are amazed by how much they didn’t know about bankruptcy relief, and we hate seeing good people lose homes, retirement accounts, or valuable property that could have otherwise been protected. If you live in New York City contact the Law Offices of William Waldner online or at 212.244.2882 to arrange a free consultation today. We only practice bankruptcy law and maintain a 99% Chapter 7 bankruptcy discharge record in New York City as of 8/31/16.

**** DISCLAIMER: This article is intended for educational purposes only. By reading no attorney-client relationship has been created. Prior results do not guarantee a similar result for future clients.