When going through the process of filing for bankruptcy and handling debts and debt collection, it is easy to feel overwhelmed and out of your depth.
Thus, you can start with the basics and build your way up from there, learning more as you go. This is a good way to create a strong understanding of the process in general.
The use of an automatic stay
Forbes discusses the use and purpose of an automatic stay. When you file your bankruptcy case, an injunction called the automatic stay immediately ends up being imposed. It works against certain creditors, or creditors who want to continue or start taking action against you. It provides you protection as you work on your bankruptcy case, disallowing creditors from contacting you in virtually any way in order to gain payment.
In some situations, you cannot get an automatic stay. In others, you can only achieve this if you get a court order that imposes the automatic stay. You will also deal with different time frames and deadlines depending on the agencies, companies or groups seeking to collect from you. Some creditors can even still take action to collect, such as child support services.
Motions creditors can take against you
Creditors can also potentially take action against an automatic stay. They can file a Motion for Relief from an Automatic Stay. If a bankruptcy judge grants this motion, then the automatic stay could end up modified or even entirely removed so the creditor can continue with their collection efforts.
This is why anyone in your situation should go through this process with skilled legal aid backing you up. It can prevent mistakes from happening and ensure a better understanding of the situation at large.