Filing for bankruptcy is one of the most difficult situations in your life. However, you will feel about it of relief upon filing for bankruptcy. That’s because you know that you will be able to receive relief against the outstanding debt you owe. In the meantime, you might have to experience many other challenges. For example, someone else might go ahead and file a claim against you. In such a situation, you will wonder what you can do to get out of the situation.
Once you file for bankruptcy, stay of proceeding will come to effect. Along with that, legal notices will be sent to all the companies and individuals that have a legal action against you. This will provide you with coverage against the unsecured debts that you have. In the meantime, stay of proceedings is in a position to keep another person from filing any claim against you as well. Therefore, you will need to go ahead and let your trustee not to leave out anything.
Even under such instances, you might receive a notice about legal action from the unsecured creditors. This can take place after bankruptcy. In such a situation, you will need to go ahead and contact the trustee. Then you will have to inform the trustee to take legal actions against them. This is a protection that you can receive from law.
It is also important to keep in mind that Stay of Proceeding is sent to the court as well. Therefore, you will be able to receive assistance with handling the legal issues as well. For example, if you are dealing with a case that is linked to wage garnishment, the stay of proceedings would provide ability for the courts to go ahead and stop it. Therefore, stay of proceedings has the ability to deliver an excellent overall protection to you with dealing with the unsecured debts that you have. Therefore, you will be able to manage the proceedings of bankruptcy with minimum hassle.
Along with this, you are also encouraged to take a look at defaulting on the consumer proposal. In case if you fail to meet the terms and conditions that are implemented within the consumer proposal, it would go into default. Therefore, your stay of proceedings would be lifted as well. Along with that, creditors will be able to regain their complete collection rights, along with the court action.
There is a possibility that stay of proceedings to be lifted by the courts as well. A creditor will have to go ahead and apply for this. In fact, they have all the rights to ask from the courts whether it is okay to go ahead and take specific legal action against you. Therefore, it is better if you can work out closely with a bankruptcy lawyer and discuss the matters. Then you can come up with the best solution available to handle the situation. In case of you have credit or debt issues visit www.gtacredit.com or call 416 650 1100
