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Stop creditors with a Chapter 13 or 7 bankruptcy filing

When one is facing financial difficulties, dealing with creditors can be a nightmare. Unfortunately, creditors can be relentless in their efforts to get the money owed them. How can one make it stop? For some Kentucky residents, Chapter 13 or 7 bankruptcies may be what is needed to get some relief.

How can bankruptcy help stop creditors? Well, when one submits a bankruptcy petition, an automatic stay is issued automatically. What does that mean? It means that creditors have to stop their efforts to collect and stop threatening any other actions until the bankruptcy case is finalized or until the further order of the court. Examples of what an automatic stay can do include:

  • Stop utility companies from disconnecting service
  • Stop foreclosure
  • Stall eviction proceedings
  • Stop wage garnishment

All of these things, if applicable to one's situation, can bring some relief until the bankruptcy case is decided. There are things that an automatic stay will not affect, however. These include:

  • Child support lawsuits or collection
  • Certain tax proceedings -- such an an audit
  • The need to pay back pension loans

While a Chapter 13 or 7 bankruptcy filing may not stop all creditors from attempting to collect or take other actions and it may be possible for some creditors to get around the stay if the circumstances are right, it may still be a good place to start. There are certain qualifications that one must meet to file for bankruptcy. In Kentucky, an experienced attorney can review one's case and assist one in pursuing a debt relief option that will best serve the client's financial interests.

Source: FindLaw, "The Automatic Stay: Stopping Creditors with Bankruptcy", Accessed on May 17, 2017

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