Being in debt is hugely stressful and the constant calls from creditors demanding money that you simply do not have is most definitely something that will probably keep you awake at night! Being hassled repeatedly by those demanding money is terribly stressful.
If you are in a position where it seems highly unlikely that you would be able to pay off the debts, even with changes to your spending habits, within a few years, then you are likely to be looking at the possibility of bankruptcy.
And there is a provision in deciding to declare bankruptcy that eases that stress hugely.
This relief is known as the bankruptcy automatic stay and gets your creditors off your case.
The second that you file your bankruptcy petition with the court, this bankruptcy automatic stay means that no creditors or debt collectors at all are permitted to contact you.
Any ongoing wage garnishments are completely stopped and any foreclosures or repossessions under procedure are also stopped immediately.
The intention of the bankruptcy automatic stay is to essentially offer your some relief and breathing space while you undergo the process of declaring chapter 7 or 13 bankruptcy.
It enables you to deal with the process with your attorney without the added worry of constant phone calls.
If the creditors ignore this and continue to contact you, they will be required to pay a fine and answer to the judge.
This does not mean that bankruptcy is for everyone though.
It should very much be seen as a last resort and when you find yourself in a position where, even with certain sacrifices and by maximizing your income as much as you are able, you will still be unable to pay off the debts over the coming years.
The automatic stay permits you the space to collect your thoughts while you undergo the process.