As an Ohio resident who is facing mounting bills that have become more than you can reasonably manage, you may be wondering what you can do to escape the seemingly constant barrage of phone calls from creditors and debt collectors. You may, too, have heard that bankruptcy’s automatic stay period can give you at least temporary relief from some of these communications, but you may not fully understand what happens during this period.
According to LendingTree, the automatic stay is something the court orders once you begin bankruptcy proceedings, and it prevents your creditors from trying to collect on your debts for a certain period. Typically, the automatic stay period lasts somewhere between three and four months, and there are certain restrictions governing who can contact you for money or payments during this time. So, what, exactly, can bankruptcy’s automatic stay temporarily protect you against?
Say you are renting a property, and your landlord filed for your eviction but is not yet in possession of the eviction judgment. The automatic stay may keep him or her from kicking you out of your home, at least for the time being. The automatic stay can also potentially protect you against foreclosure in the event that your creditor has begun foreclosure proceedings against you.
The automatic stay, too, can help you keep the lights on, at least temporarily. Generally, utility companies cannot disconnect your services for nonpayment during bankruptcy’s automatic stay period.
This information about your protections during bankruptcy’s automatic stay is educational in nature and not legal advice.