Nobody likes to get phone calls from collection agencies. Despite laws intended to protect consumers from harassment, some creditors do not always take the right course of action when attempting to collect a debt. Often, creditors will persistently call the home of a particular debtor with demeaning and abusive behavior. Not only is this unethical it can rise to the level of unlawful. If you have gotten to this point with your financial situation, it’s no wonder you’re considering filing bankruptcy for some relief! In essence, bankruptcy will put on hold the demands of many creditors and stop the harassing phone calls and other inappropriate behavior all together.
Once a creditor or bill collector becomes aware of a filing for bankruptcy protection, it must immediately stop all collection efforts. After you file the bankruptcy petition, the court mails a notice to all the creditors listed in your bankruptcy schedules. This usually takes a couple of weeks. Creditors will also stop calling if you inform them that you filed the bankruptcy petition, and supply them with your case number. In some cases, you or your attorney should contact the creditor immediately upon filing the bankruptcy petition, especially if a law suit is pending. If a creditor continues to use collection tactics once informed of the bankruptcy they may be liable for court sanctions and attorney fees for this conduct.
When you file for a bankruptcy, a magical process called “the automatic stay” occurs immediately. An automatic stay stops creditors from calling, and can even put an end (at least temporarily) to many other stressful issues related to not being able to pay your bills, also. Any lawsuits filed against you must be put to a stop, immediately. It can also provide assistance and prevention of various other common emergencies. These are some of the reasons why many people decide to move forward and file for bankruptcy.
Tags: attorney, automatic stay, bankruptcy, creditors, debt collectors
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