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How debtors benefit from an automatic stay

South Carolina residents who are seeking relief from creditor collection efforts may wish to file for bankruptcy. When they do so, they are in general granted an automatic stay of any collections lawsuits by any creditor, government agency or other person or entity. It can also provide other benefits such as keeping the lights or heat on in a home if people are behind on utility payments.

Typically, a utility company cannot turn off the heat, lights or water for a specified period of time after a bankruptcy has been filed. It may also stop foreclosure proceedings, which means that an individual may remain in the home at least on a temporary basis. Those who are looking for long-term relief from a foreclosure may wish to file for Chapter 13 bankruptcy. An automatic stay may apply to tenants who are being evicted by their landlords.

The automatic stay may also put a temporary end to wage garnishment, which could make it easier to pay rent or utility bills. Even if an individual does file for bankruptcy, the IRS may still audit that person or demand payment of taxes already owed. It will also not absolve people of their obligation to pay child support or stop wage garnishment resulting from loans taken from a pension.

Those who are having trouble paying their bills or are facing legal action because of an unpaid debt, filing for bankruptcy may be a worthwhile decision. Legal counsel may be able to explain the benefits of doing so such as getting an automatic stay of credit actions. This may put an end to foreclosure or eviction proceedings or prevent a car or other asset from being repossessed for the duration of the stay.

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The Huggins Law Firm, PA

Columbia Office
1812 Lincoln Street
Suite 201
Columbia, SC 29201

Phone: 803-764-1558
Fax: 803-764-1563
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925-D Wappoo Road
Charleston, SC 29407

Phone: 843-509-0039
Fax: 866-481-2325
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