One critical part of every bankruptcy is something known as the “automatic stay.” This legal order, while fairly obscure, is critical to people declaring bankruptcy, since it gives them the breathing room they need to sort out their finances. But what exactly is the automatic stay, and how can it help people suffering from severe financial distress?
For some people, Chapter 13 bankruptcy, which is also known as a wage earner’s plan, can be an effective means of escaping severe financial distress. However, many people do not understand what a Chapter 13 bankruptcy entails, or what its benefits are. Here are five important facts you should know if you are considering declaring Chapter 13 bankruptcy: