If you have ever been contacted by a creditor or debt collector you have experienced the frustration and anxiety that go along with knowing you owe someone money that you can't afford to repay. Whether you are simply trying to repay a small missed payment due to memory lapse or working to stay out of deeper debt problems like foreclosure or repossession, the harassing phone calls and mailed letters make a bad situation worse. For bigger debt problems facing the pressure from debtor collectors, there is a way to stop the harassment.

The Automatic Stay

The term "automatic stay" refers to a court order issued to all your creditors and loan account holders prohibiting them from collecting on a debt. It is essentially a cease-fire of debt collections. Once this order has been issued, creditors are not legally allowed to take any further debt collection action against you or make any contact with you.  The automatic stay can allow you to:

Stay in your home -- the order halts foreclosures and evictions. The automatic stay buys you time to develop a plan to resolve secured debts in a Chapter 13 bankruptcy without the threat of having to relocate.

Keep your resources -- the order halts service termination by utility companies. The automatic stay will keep your electricity, gas, and telephone services operating while you get caught up on delinquent payments.

Regain your paycheck -- the order halts wage garnishments. The automatic stay will prevent your employer from deducting your paycheck for a period of time until your debts to the garnishing creditor are resolved. In some cases, you may even be able to get repaid a portion of previously garnished wages.

If you are suffering with debt burdens you can no longer manage on your own, consult with a bankruptcy attorney in Sacramento California about how the automatic stay can help you. Don't risk losing your property and suffer harassing debt collection threats. Learn more about all the debt relief options available.