If you owe money to a creditor, the consistent calls and emails can become one of the most frustrating parts of being in this type of financial distress. In fact, fielding calls about outstanding debts is one of the most common reasons that people consider filing for bankruptcy.
Declaring bankruptcy could be a welcome solution to stopping the relentless calls from collection agencies so you can be relieved of some or all of your debt burdens. Here are some frequently asked questions about how a bankruptcy lawyer can stop creditor harassment.
Will filing for bankruptcy stop creditor harassment?
Yes, filing for bankruptcy can stop creditor harassment. The instant you file for Chapter 7 or Chapter 13 bankruptcy, a court order called an automatic stay goes into place. This order halts creditor harassment efforts, including foreclosure actions, calls, letters, and any other forms of contact regarding your debts.
Above all, the automatic stay puts you back in control, allowing you time to create your own financial plan, instead of being constantly pressured by creditors.
What does the automatic stay not cover?
While in most bankruptcy cases, the automatic stay stops credit harassment for your debts, there are a few debts that are not covered by the automatic stay. When you contact a bankruptcy attorney, they will evaluate your situation and inform you on whether or not the automatic stay will stop some of all of your creditor harassment for your particular case.
There are a few instances where the automatic stay may not be able to help you:
- Criminal proceedings
- Child support
- Spousal maintenance or alimony obligations
- Certain tax proceedings
- Loans from a pension
- Multiple filings
Can a creditor get around the automatic stay?
Once you file for bankruptcy, your creditors will receive a notice of the bankruptcy which tells them they are no longer legally allowed to contact you to collect debts. However, a creditor can file a request to lift this automatic stay. If the request has good cause, the automatic stay could be reversed.
What if a creditor violates the automatic stay?
Because of the harsh consequences that a collector can receive, it is very rare for an automatic stay to be knowingly violated. It does, however, occasionally accidentally happen during the early stages of filing.
If a creditor does reach out to you, your bankruptcy lawyer can resend the court document which informs the creditor of their mistake, oftentimes quickly resolving the situation. If you continue to be contacted by creditors, you can lawfully sue for harassment.
Contact Barbara B. Braziel To Stop Creditor Harassment
At the Law Offices of Barbara B. Braziel, we understand how creditor harassment can exacerbate an already difficult situation. If you are looking for a solution that will not only stop these calls, but also put you back on track with your finances, schedule a consultation with Barbara B. Braziel.
We will set you free from creditors and provide expert guidance on your journey back to financial stability.