Bankruptcy Protection: How It Helps
Bankruptcy can seem like murky water and it is often forgotten that bankruptcy law is federal law. As such, citizens are entitled to certain constitutional protections, most notably outlined by bankruptcy law as “preventing economic enslavement.” While debtors are reasonably stressed out during a bankruptcy filing, it is important for them to remember that bankruptcy protection applies to them and can help throughout the process. In today’s blog post, Groce and DeArmon will discuss bankruptcy protection and how these protections benefit the debtor.
The Automatic Stay
The most obvious and broad bankruptcy protection is something called “the automatic stay.” The automatic stay is Bankruptcy 11 USCA Section 362 of the bankruptcy protection law and it automatically goes into effect whenever a debtor files for bankruptcy. This protection protects the filer from all collections, lawsuits, repossessions, foreclosures, legal proceedings, and judgments as soon as the case is filed. Creditors also aren’t allowed to sue or continue lawsuits against you and may not garnish your wages.
This is an all-encompassing protection as well. Once your case is filed, creditors aren’t even allowed to contact the debtor in any fashion. This includes by phone, email, text, social media, or even old-fashioned mail. The single this protection exists is to keep your constitutional rights in your hands. Creditors who do not comply with these rules face penalties themselves, similar to NCAA recruiting violations. This keeps your rights safe.
Why Is This Helpful?
While the automatic stay is a needed form of bankruptcy protection, it shouldn’t be confused with debt forgiveness. This doesn’t serve to rid you of your debts. It isn’t a get-out-of-jail-free card. So how is it helpful? Well, for starters, it will keep collectors and collection agencies off of your back. Bankruptcy is already bad enough. It’s even worse with a collection of credit agencies breathing down your neck. The automatic stay allows you some breathing room as you work through your situation.
Secondly, it helps you to exercise your rights as an American citizen. While you are still responsible for your debt and will be expected to pay it off in some fashion, you are not a slave to your collection agency or credit provider. This protection makes sure that you won’t be forced into a situation that will continue to dictate your life in the future after your current debt is already paid.
Can Groce & DeArmon Help With Bankruptcy Protection?
Fortunately for you, yes! Groce & DeArmon specializes in bankruptcy protection and can help ensure that your rights are protected. We exist to help people walk through the bankruptcy process and our goal is for you to leave the process in better shape than before. Contact us today at (417) 862-3706, call us toll-free at 1 (800) 640-3706, or visit our website for more information.