The automatic stay can provide important relief for filers of bankruptcy that is ongoing during the bankruptcy process. It is essential for struggling consumers to understand how personal bankruptcy protections can help them enjoy debt relief overall and provide breathing room from creditors during the process as well.

Once the filing party has filed for bankruptcy protection, the automatic stay goes into effect to prevent creditor collection actions from proceeding. This means creditors are prevented from pursuing any collection actions against the filing party during the bankruptcy process and will be unable to contact the filing party as part of a collection action. This can come as welcome relief for many consumers who are struggling with the stress of trying to pay their bills.

The automatic stay is part of any bankruptcy filing so whether the filing party applies for Chapter 7 bankruptcy or Chapter 13 bankruptcy, they will enjoy the benefits of the automatic stay. Chapter 7 bankruptcy protection is referred to a liquidation bankruptcy process in which the filing party’s non-exempt assets are liquidated to repay creditors and allow the filing party to enjoy a fresh financial start. Chapter 13 bankruptcy protection is a reorganization bankruptcy option that allows the filing party, usually with a reliable source of income, to reorganize their debts and enter into a repayment plan to repay them over a more manageable period of time.

Anyone considering filing for personal bankruptcy protection should be familiar with all of the different protections the process provides. Whatever option the filling party decides is best for them, they will enjoy the protections of the automatic stay and debt relief.