The Automatic Stay and Chapter 13 Bankruptcy

If you are struggling to pay off a significant amount of debt and can no longer meet your financial obligations, bankruptcy is one option that you may want to consider. Chapter 13 is a form of bankruptcy protection that is available to consumers who are attempting to regain control of their finances.

With a successful Chapter 13 filing, you can begin to pay back your debts without the stress of dealing with overly aggressive creditors. To learn more about Chapter 13 and how to begin your bankruptcy filing, contact the Boston bankruptcy attorneys of Joshua Spirn & Associates today by calling 800-975-5346.

What is the “Automatic Stay”?

When a person files for bankruptcy, he or she is protected from any further credit collection attempts by lenders. This legal protection is known as the automatic stay. The purpose of the automatic stay is to prevent creditors from contacting the person who has filed and to give the debtor a chance to restructure his or her finances and pay back the debt.

Importantly, the automatic stay even stops foreclosure proceedings that are in progress. By stopping communications between creditor and debtor, the person filing for bankruptcy can focus on creating a plan to pay back the debt that he or she owes.

Chapter 13 Filing

As soon as a Chapter 13 filing is accepted, the automatic stay goes into effect. The debtor is required to submit a payment plan which outlines how he or she plans to pay back outstanding debts over the bankruptcy term. The automatic stay remains in effect for the length of the payment plan or until the debt is legally discharged.

Contact Us

To learn more about Chapter 13 bankruptcy and how we can help to ensure that your legal rights are protected throughout your filing and repayment, don’t hesitate to contact the Boston bankruptcy lawyers of Joshua Spirn & Associates today at 800-975-5346.