Default Judgment: The Automatic Stay Could Help at the Last Minute
by
Gregory Mark Fitzgerald on Nov. 07, 2018
Bankruptcy & Debt Credit & Debt Bankruptcy & Debt Collection Bankruptcy & Debt Bankruptcy
Summary: The automatic stay is an extremely helpful injunction, and your creditors will be alerted to your bankruptcy filing; however, even if they are not, the automatic stay still prohibits them from collecting on any debts.
"In the case that nothing is done, and creditors have been suddenly imbued with a lot more power thanks to the judgment, you may find yourself panicking about losing up to 25 percent of your disposable income each month due to garnishments. You may wonder how to handle the potential seizure of property or funds from checking accounts. Speak with your attorney about your options, including possibly filing for bankruptcy. Not only could you see all your unsecured debts discharged within three to six months, but all collections activity would be halted immediately through the automatic stay."
Read the entire article on the official Fitzgerald & Campbell, APLC blog.