One of the most difficult and stressful parts of having debt problems is the fact that borrowers become the targets of aggressive debt collection agencies. These debt collectors can be rude, invasive and they will track borrowers down wherever they are. They will even call distant relatives, workplaces and homes, and this can be just as embarrassing as it is stressful to deal with.

However, once bankruptcy is successfully filed, borrowers will receive legal protection from bill collectors and creditors via an automatic stay. In addition to harassment from creditors, the automatic stay will also stop government entities, collection agencies and creditors from filing a lawsuit against the borrower — and it will even stop pending creditor lawsuits in their tracks. It also works to help individuals who are behind on their child support obligations, facing eviction or faced with the threat of getting their utilities turned off.

Finally, another excellent benefit of the automatic stay — and why many New Jersey residents choose to file for bankruptcy — is the way the automatic stay will temporarily stop foreclosure proceedings. Although the automatic stay may not be a permanent solution to these debt problems, it could give borrowers the time they need to get back on track with their payments and prevent them from losing their homes.

At William H. Oliver, Jr., and Associates, we have seen numerous New Jersey residents get saved by the automatic stay, so they could continue heating their homes in winter or prevent themselves from getting kicked out onto the street. If you or your family is facing harassment from debt collectors, facing foreclosure proceeding or facing other kinds of debt issues, our law firm can help you investigate your options.

Source: FindLaw, “The Automatic Stay: Stopping Creditors with Bankruptcy,” accessed June 09, 2016