Bankruptcy attorneys specialize in bankruptcy law. Many people are unaware of the different chapters of bankruptcy law. Bankruptcy laws are unusually complex laws that require professional assistance to navigate. Here is what you need to know about Chapter 17. 

1. The Process

While some "chapters" of the bankruptcy code refer to the type of bankruptcy being filed and the law that it is relevant to, Chapter 17 is part of all types of bankruptcy filing. Chapter 17 refers to the laws that affect the "automatic stay." 

Each code of bankruptcy law is referred to by the "chapter" in the law that it falls under. For example, Chapter 13 (sometimes called a consumer debt plan) refers to Chapter 13 of the bankruptcy code. It can be confusing, which is why bankruptcy attorneys are a must when dealing with these laws. 

2. The Automatic Stay

Chapter 17 bankruptcy laws outline the rules for an 'automatic stay." The minute you file for bankruptcy, all debt collection actions come to a screeching halt. Some exceptions to the automatic stay are outlined in Chapter 19 of the bankruptcy laws. 

However, most debt collection actions are stopped with the automatic stay. Creditors can't pursue your vehicle or home, continue to call, or take other actions against you while protected from the automatic stay. Chapter 17 laws are in place to allow the debtor to regroup and allow the bankruptcy court to evaluate your petition for relief. 

3. The Areas Addressed

Chapter 17 of the bankruptcy laws addresses garnishments, collections, and other activities related to debt collection. Bankruptcy attorneys often use Chapter 17 to help their clients find relief from debt collection. It is a valuable tool. 

Bankruptcy is not the right option for everyone. According to NerdWallet, bankruptcy may be the right option if your debt is more than 50% of your annual income and there is no path to paying down that debt within five years. The best way to determine your options is to speak to a bankruptcy attorney. 

An experienced bankruptcy attorney will review your options with you. They will take the time to explain the benefits of Chapter 17 bankruptcy and how it pertains to your unique situation. Call today at Christman & Fascetta LLC to learn more about your options.