If you are facing an eminent home foreclosure or fear your car will be repossessed any day, it is possible to stop creditors from acting by filing an emergency petition. Filing an emergency petition will result in a federal court order called an ‘order for relief/automatic stay’ which can protect you from certain actions by your creditors. The emergency petition requires less initial documentation to expedite the process, but you will need to submit a complete filing within a specified time frame.
When you file for a bankruptcy of any kind, an automatic stay goes into effect prohibiting creditors and collection agencies from taking action to collect most kinds of debt unless the law or bankruptcy court says they can. A stay can stop most creditors from harassing you, pursuing lawsuits, and taking actions to recover property. This will, at least temporarily, block many creditors from sending threatening letters or making collection calls, legally garnishing your wages, seizing your home or car, cutting you utilities and reducing or stopping public assistance.
The ‘breathing room’ created by an automatic stay will enable you time to work out a bankruptcy strategy that works for your situation, instead of being at the mercy of creditors concerned only with recovering their losses. If you are facing financial difficulties and are considering bankruptcy as an option or have an urgent situation developing, an important first step is to seek the advice of an experienced bankruptcy attorney who can help you decide if bankruptcy is the right move for you and offer strategies for keeping your home, car or countering other collection actions. Contact the bankruptcy Law Offices of Charles Covey for help. Charles has been proudly serving clients in Peoria and surrounding communities for over 30 years – call us today to get started.