Friday, September 23, 2016

How Soon Will My Creditors Stop Calling After I File Bankruptcy?

One of the hardest things to deal with when you are not able to pay all of your bills is the constant calls by creditors, or collectors. When you are facing a seemingly never ending stream of phone calls it can be hard to take a moment to come up with a plan to get out of debt. It is during these times that it sure would be nice to get a break from your lenders, so you can take a breath and think about what will work for you.

Fortunately, filing bankruptcy will give you instant relief from creditor calls and other actions. The instant you file a bankruptcy case you get the benefit of the automatic stay. The automatic stay is a legal mechanism that makes it illegal for creditors or debt collectors to call you and try to collect a debt. It is also against the law for those same creditors and debt collectors to maintain a lawsuit against you regarding their debt, as long as you are in an active bankruptcy. Here are just a few of the things that are prohibited by the automatic stay:

         Calls and letters to you from lenders and collectors.

         Foreclosure actions, lawsuits to collect money, and any action to repossess your personal property (like your car).

         Pending garnishments on your wages, which means your employer will no longer be required to hold any money out of your paycheck.

The relief offered by the automatic stay is supposed to be just as it sounds; automatic. But it does take some time to get the information that you have filed bankruptcy out to your lenders, so if you get a stray call in the first few days after you file you can provide the caller with the case number and terminate the call. If, however, you continue to get calls or are sued for a debt in the weeks or months after you file, you do have recourse. In those instances you can file a lawsuit against the offending lender, within your actual bankruptcy case. You are entitled to financial compensation for any damages you have suffered as a result of the continued calls or collection efforts, and should be prepared to offer evidence of the damages you seek. An experienced bankruptcy attorney can explain your rights to you in this regard, and you should immediately notify your bankruptcy attorney if your lenders do not stop contacting you after you file your case.

For more information about the benefits of bankruptcy and how the automatic stay works, call us today or reach us online at We will help by looking at the facts of your case and giving you options to reach your financial goals.


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