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Has your debt become unmanageable?
Are debt collectors harassing you over the voice or through email?
Is your paycheck being garnished because of unpaid debt?
Are you considering filing for bankruptcy in the state of Colorado?
When you’re struggling with debt, it can feel like you’re stuck in a never-ending cycle of payments with no end in sight. Maybe you’ve thought about filing for bankruptcy, but are hesitating to go in that direction for one reason or another.
People talk all the time about the negative stigma surrounding bankruptcy. That seeking help from the government to erase debt is somehow shameful or makes you a failure. Our Denver debt relief law firm is here to combat that negative image. Our team of legal professionals believes in focusing on the positive. That’s why we’ve designed this webpage to focus on one of the most important aspects of a Chapter 7 or Chapter 13 bankruptcy case, the automatic stay.
If you feel like bankruptcy is your last option, we know this decision does not come lightly to you. We appreciate that significant time has gone into this decision, not to mention the stress and emotions attached to it. We respect and understand how hard this can be, and we are here to help lift the weight off of your shoulders. That starts here, by outlining some of the positive effects of filing for bankruptcy.
After you’ve had a chance to read through the provided information on automatic stays, please reach out to us. Our team of experienced Denver bankruptcy attorneys is just a phone call or email away. We offer a no-cost case consultation to each prospective client, during which we’d be happy to further explain the automatic stay, and other benefits filing for Chapter 7 or Chapter 13 bankruptcy in Denver can bring.
If you’ve been researching bankruptcy you have probably seen the phrase automatic stay bandied about. It’s an important facet of bankruptcy in Denver, whether you’re planning on filing Chapter 7 or Chapter 13.
The automatic stay is a court order that immediately goes into effect as soon as a person files for bankruptcy, and its function is to stop any further communication or attempts to collect debt by creditors.
Listed below are some examples of how an automatic stay can help you.
Many Larimer County area bankruptcy attorneys refer to these types of businesses as predatory lenders. An automatic stay halts any harassment you may receive from payday loan collections, and because payday loans are unsecured debt, they can be discharged by filing for Chapter 7 or Chapter 13 bankruptcy.
Of course, there are some debts that the automatic stay doesn’t cover. Our Denver area bankruptcy attorneys have compiled a list below of what the automatic stay doesn’t cover in Denver bankruptcy cases so you’re not caught unaware.
Criminal Prosecution– The stay doesn’t stop criminal prosecutions. If you’ve committed a crime or are accused of it then an automatic stay can’t prevent you from going to trial and anything that follows.
Retirement Plan Loans– It’s common for people to borrow money from their 401k account to pay bills when they begin to experience difficult financial circumstances. If you took out a loan against an IRA then any payments that are being automatically deducted from your paycheck will still be deducted.
Paternity and Divorce– An automatic stay will not affect any paternity tests or divorce proceedings. Actions to establish or modify support are also not stayed. Neither are proceedings involving custody, marital status, or paternity. The only time a divorce may be held up by an automatic stay is if there is property that needs to be divided.
Tax Administration- As mentioned earlier, the automatic stay will prevent garnishment for tax debts, but the taxing authority still has the right to continue certain actions in an attempt to collect taxes you owe, including tax assessments and auditing
For more information on the automatic stay and what it does and does not cover, check out the American Bar Association’s article “The Automatic Stay in Bankruptcy: An Overview” or contact one of our CO bankruptcy attorneys for a free consultation.
Do you need high-quality legal guidance and support through a bankruptcy case?
Are you looking for a solution to your overwhelming debt?
Would you like to learn more about gaining a fresh financial start through bankruptcy in Denver?
No matter your current financial situation, our Denver bankruptcy lawyers are committed to helping you achieve long-term financial debt relief.
With decades of combined experience, our CO debt relief attorneys take great pride in helping clients throughout Denver, from Denver County to Lincoln County and everywhere in between.
There is no shame in needing a fresh start with your finances, regardless of whether an unexpected medical emergency or recent job loss is to blame. Our team of knowledgeable legal professionals will put our all into helping you sort out your finances so that you can move forward with your life. Contact us today, a no-cost case consultation is just a phone call or email away.