Advocating For Consumers In Bankruptcy Filings For More Than 25 Years

When you struggle with debt, it can be difficult to escape the thought of that burden. Persistent collections attempts from creditors can make that even worse. You may find written demands in your mailbox or email inbox. The messages on your phone may be filled with their phone calls. Representatives from credit agencies may even come knocking at your door.

While the stress from this situation may impact your daily life, it is possible to end the calls from creditors. The bankruptcy process offers you relief not just from debt but also from the pressure of creditors and collection agencies through an automatic stay.

Protection from collections begins when you file for bankruptcy.

When you file for bankruptcy, an automatic stay goes into effect. This order prevents creditors from pursuing collections actions against you or contacting you about your debt. This halts calls from creditors, but it can also pause wage garnishment, disconnections from unpaid utilities, evictions and foreclosures while you get your finances in order.

Automatic stays apply to both Chapter 7 and Chapter 13 bankruptcies.

While there are many differences between Chapter 7 and Chapter 13 bankruptcies, automatic stays are a part of both. They allow the court to determine which debts you will pay first, which debts can be paid later in the process and which, if any, the court will discharge. If creditors continue to harass you, you may be able to file a lawsuit for violation of the automatic stay.

If you struggle with debt, bankruptcy may offer you relief. Working with an attorney can help you end the stress of creditor calls, give you the knowledgeable guidance you need to make an informed decision about debt relief and work toward a stronger financial future.

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