Bankruptcy Stops All Creditor Harassment

The biggest advantage to bankruptcy is that it stops all creditor harassment the instant the bankruptcy petition is filed. Often, we find our clients are suffering from stress, anxiety and depression due to merciless harassment by creditors. They often report receiving in excess of fifty phone calls per day; calls at work; embarrassing notes left at their homes; veiled and sometimes outright illegal threats.

Federal and state laws limit what a collector can do and say to collect a debt. If you are being mistreated and abused by debt collectors, you may have a case against the debt collector even if the debt is legitimate. Filing bankruptcy instantly stops all debt collection and creditor harassment. In fact, many of our clients receive relief from this persistent harassment once they retain us even before they file. When you are represented by an attorney, the creditor no longer has any right to contact you provided they have been notified of your representation.

Bankruptcy Stops All Lawsuits

When you file bankruptcy, the actually filing results in what is called the “automatic stay.” What this means is that filing the bankruptcy automatically stops all creditors from being able to proceed with any type of action to collect the debt or take enforcement action. Bankruptcy also stops any pending foreclosure suit or sale, tax sales, tax levies and garnishments. One thing bankruptcy cannot stop, though, is child support collection.