Filing for bankruptcy in Tennessee may put a stop to a foreclosure or repossession. It could also prevent utilities from being shut off or a landlord from evicting a tenant. The automatic stay can also put a stop to wage garnishment, which would allow an individual to bring home a larger paycheck until the stay is lifted. Those who owe money to the IRS could be able to avoid a lien on their property while the stay is in place.
However, the government does have the ability to demand that an individual file a tax return or pay taxes owed even if a stay goes into effect. Individuals who file for bankruptcy will also not be able to put a stop to child support proceedings. This means that they could still be liable for back support owed or subject to a change in their current child support orders.
It is important to know that an automatic stay can be lifted if a creditor asks for this to occur. If a person has filed for bankruptcy less than a year after a previous case is discharged, the automatic stay will typically last for no more than 30 days. However, the stay can be extended if a debtor, creditor or trustee asks for more time and can show that the filing was done in good faith.
Debtors who are looking for a fresh financial start may be able to obtain it by filing for bankruptcy. An automatic stay may allow a person to remain in a home or avoid losing a car until the case is resolved. An experienced attorney can outline the eligibility and other requirements.