If you have found yourself in debt, you are probably also experiencing the harassment of creditors. They call you during family dinner. Intimidating letters keep appearing in your mailbox. They send texts to your phone about coming to get your car.
The threats and harassment from creditors can be extremely overwhelming. Now might be the time to put a stop to it by filing bankruptcy.
What types of bankruptcy stop creditors?
Filing for Chapter 7 or Chapter 13 bankruptcy institutes and “automatic stay”. This means that creditors can’t take any action when it comes to your debts, including contacting you.
What does it keep creditors from doing?
Once you file, they are not allowed to contact you, including calls, texts, email and letters. They also can’t take any action concerning your debts. This means they can’t foreclose on your home, take your property, place any liens or file a lawsuit against you.
What if they don’t stop calling?
There should be an immediate decrease in the amount of calls you are getting from creditors once you file for bankruptcy. Though it does sometimes take a bit of time for all of your creditors to get your bankruptcy notice and put it into their systems, some may refuse to stop calling and ignore your filing altogether.
If creditors keep contacting you, don’t accept the harassment. Notify your bankruptcy attorney. They will either notify the creditors of your filing or report the harassment to a bankruptcy court.
Filing for bankruptcy has many benefits, including relief from the badgering and threats of creditors. If you are experiencing this, start by explaining your situation to an attorney, who will help determine what type of bankruptcy is right for you.