Stopping Collections
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Stopping Collections Through Bankruptcy Protection

One of the most powerful and immediate impact that a bankruptcy filing has is the implementation of the “automatic stay.” This effectively puts a stop to most collections actions, providing you with the time you need to get your financial matters in order while providing some relief from the stress that comes along with overwhelming debt. Having a skilled lawyer on your side who can help guide you through this process will ensure that you start benefitting from this process as soon as possible.

At Affordable Law, PC, our attorney has been helping people throughout New Mexico achieve lasting debt relief for more than 20 years. We can help you explore your bankruptcy options and let you know how the automatic stay can help you get on the path to a better financial future.

Actions That The Automatic Stay Can Prevent Or Temporarily Stop

The automatic stay affects a number of collections actions, including:

Disconnections from utilities: If a utility company is threatening to disconnect your water, electric or gas service because you are behind on your payments, the automatic stay can prevent disconnection for at least 20 days.

Foreclosure proceedings: If you are being threatened with or are in the middle of a foreclosure action, the automatic stay will put a temporary stop to these proceedings. This may provide you with the time you need to catch up on past due payments and may enable you to stay in your home.

Wage garnishment: Filing for bankruptcy will end wage garnishment, including garnishment from multiple creditors.

What The Automatic Stay Will Not Stop

The automatic stay will not stop all collections actions. Some things that the automatic stay will not prevent include:

Some tax proceedings: You may still be subject to IRS audits and a demand for tax payments. However, the automatic stay will prevent the IRS from issuing a tax lien, as well as taking action to seize your property or income.

Child and spousal support payments: Lawsuits seeking to establish, modify or collect child and/or spousal support payments will not be stopped once you have filed for bankruptcy.

Multiple bankruptcy filings: If you filed for bankruptcy during the previous year, the stay will terminate automatically after 30 days. You may be able to overcome this if you can prove that your filing was done in good faith.

Some creditors may be able to get around the automatic stay by asking the bankruptcy court to lift the stay. This is often seen during foreclosure proceedings when there is simply no way for the homeowner to pay off past due mortgage payments while the bankruptcy is pending. You can rest assured that we will do everything we can to help protect you from creditors while we work on your bankruptcy.

Contact Us For A Free Consultation To Discuss Your Debt Relief Options

If you are being harassed by creditors we can let you know whether bankruptcy is the right option for you. To schedule a free initial consultation, call our law office in Albuquerque at 505-633-8723. You may also contact us online and we will respond to your message as soon as possible.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.