Once you file for bankruptcy in New York, a special provision known as the automatic stay kicks in to protect you from recurring bill collectors and creditors. This stops any lawsuits filed against you by collection agencies, government entities or creditors that are looking for money from you. It is a powerful tool that can be very valuable if you are in serious financial trouble.

If you are about to be evicted from your home or if utility companies are threatening to shut off your services, then the automatic stay can make a serious impact on your life. It can stop foreclosure proceedings, stop evictions, and stop a government agency from claiming back overpayments of your public benefits.

Additionally, it can also stop wage garnishment. Bear in mind that there are some situations where the automatic stay doesn’t help you. This happens if the IRS is coming after you to audit you or fix a tax deficiency, if you owe child support or if you are linked to a criminal proceeding with a criminal portion and a debt portion.

Furthermore, filing for bankruptcy multiple times or too close to one another or loans from your pension are other issues that could cause the automatic stay to fail to work for you the way that you might expect. Of course, you can get answers to all of your most pertinent bankruptcy questions by speaking directly with a New York bankruptcy attorney. If you believe that bankruptcy is the best way out for you, now is a good time to set up a meeting to learn about how bankruptcy can help you and what you can do to set yourself up for success as you enter the bankruptcy process.

If you are considering filing for bankruptcy, then you should speak with a qualified attorney. The law office of Jayson Lutzky, P.C. represents individuals filing bankruptcy in New York City. Mr. Lutzky has over 32 years of experience practicing law and offers free in-person consultations. Call 718-514-6619 to set up an appointment or visit www.MyNewYorkCityLawyer.com to learn more about federal bankruptcy laws.