Lynch Law Offices, P.C.
Call Us Now for a FREE Consultation:
Offices in Four Convenient Locations

The automatic stay an important part of Chapter 13 bankruptcy

The phone keeps ringing and notices keep arriving. Once an Illinois resident gets behind in paying bills, it is difficult to get caught up. Many times, what began as a minor financial crisis turns into a nightmare that just will not end. As the financial crisis becomes more severe and creditors continue collections efforts, filing for Chapter 13 bankruptcy may provide the answer to the financial dilemma.

One benefit of filing for bankruptcy is that once the paperwork is filed, an automatic stay is put in place that prevents creditors from attempting debt collection. Then, through the bankruptcy process, the individual is given the opportunity to reorganize his or her debts into a plan that is more affordable for the individual. Without the hassle of bill collectors calling or sending constant delinquent notices, the individual can focus on moving forward.

One benefit of the automatic stay is that it can stop proceedings in their tracks. For example, if the electric company has threatened to cut off power to the home, once Chapter 13 bankruptcy is filed, the automatic stay prevents this from happening. Additionally, if the mortgage company is threatening foreclosure, the automatic stay will stop this proceeding. Then, by utilizing the repayment plan established during the bankruptcy process, the individual may be able to catch up on past due mortgage payments and continue moving forward.

For many Illinois residents, one small financial crisis can lead to financial disaster. Fortunately, when this happens, there is a way to overcome the situation and start fresh. An experienced attorney can review the individual's situation and help determine if Chapter 13 bankruptcy is the appropriate option.

Source:, "The Automatic Stay: Stopping Creditors with Bankruptcy", Accessed on June 18, 2017

No Comments

Leave a comment
Comment Information

How Can we Help You? Contact An Attorney

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Four Convenient Office Locations To Serve You

Toll Free: 800-491-7493 Fax: 888-691-8337

Five Convenient Office Locations To Serve You

Lisle Office - DuPage County
1011 Warrenville Road
Suite 150
Lisle, IL 60532

Map & Directions

Lockport Office - Will County
900 South State Street
Second Floor, Suite A
Lockport, IL 60441

Map & Directions

Aurora Office - Kane County
1444 North Farnsworth
Suite 100
Aurora, IL 60505

Map & Directions

Palatine Office - Cook County
800 East Northwest Highway
Suite 700
Palatine, IL 60074

Map & Directions

Chicago Office - Cook County
1 S Dearborn
Suite 2100
Chicago, IL 60603

Map & Directions

Toll Free: 800-491-7493 Fax: 630-960-4755