Chapter 13 Bankruptcy and the Benefits of the Automatic Stay

Many individuals in Connecticut and across the country have suffered through periods of significant financial burdens. The constant phone calls and collection letters that accompany overwhelming debt can add a great deal of stress to an already difficult situation, prompting some to explore the available options for relief. Those in search of protection from creditors may find it advisable to consider the potential benefits of filing for Chapter 13 bankruptcy, such as the automatic stay.

Upon filing for Chapter 13 bankruptcy, the automatic stay may kick in and provide an individual with protection from creditors. This may help relieve a substantial amount of stress while an individual forms a plan to repay a certain amount of his or her debts over a given period. In addition to bringing the phone calls and letters to a halt, there are numerous other areas in which the stay may also prove beneficial.

The automatic stay may also provide protection against wage garnishment and disconnection of utilities. For those worried about losing their home, it could bring a halt to foreclosure proceedings, even if only temporarily, and protect against eviction. The stay may persist throughout bankruptcy provided an individual is able to make the agreed upon payments on time.

Those who wish to explore the benefits of Chapter 13 bankruptcy may find it advisable to speak with someone with experience in the area for guidance. By speaking with a bankruptcy attorney, a client in Connecticut could obtain valuable insight into the process. An attorney can cover a client’s financial concerns and needs and provide advice that may assist him or her in choosing the correct path for debt relief.

Source:, “The Automatic Stay: How It Protects You When You File Bankruptcy“, Carron Armstrong, Accessed on Aug. 30, 2017