When I File for Bankruptcy, Will My Creditors Stop Harassing Me?

If you have been getting phone calls, collection letters, and are facing other collection activities from creditors, you may be wondering if they will stop harassing you once you file for personal bankruptcy. Creditor harassment can take many forms, including repossession, foreclosure, wage garnishment, property liens, constant phone calls, and more. This activity can take a serious toll on your emotional health, leading to stress and anxiety, which can ultimately affect your physical health. Our Los Angeles bankruptcy attorney can help.

You should know that as soon as you file for bankruptcy, an automatic stay will immediately begin to protect you from all creditor activity. The equivalent of a temporary injunction, the automatic stay covers nearly all your secured and unsecured debts. It can provide you with a breathing spell as you begin the process of bankruptcy, whether you are creating a repayment plan under a chapter 13 bankruptcy or seeking to have your debts discharged under a chapter 7 bankruptcy.

You do not need a court order to get an automatic stay. The automatic stay is truly and entirely automatic, requiring only that you file your petition for bankruptcy. Creditors must cease all collection activities as soon as your petition is validated by the bankruptcy clerk. Willful violations of your automatic stay will result in court-ordered sanctions, and you may even be entitled to damages.

Bankruptcy exemptions are another protection afforded you by the bankruptcy court. These protect a certain percentage of your property so that once your repayment plan is completed or your debts are discharged, you have the financial wherewithal to begin again.

If you are struggling with your finances and are dealing with creditor harassment, you should know that you are not alone and that personal or business bankruptcy may be able to provide you with relief. To learn more or to schedule your consultation, contact our bankruptcy lawyer in California today.

Source: Bankruptcy Attorney Los Angeles

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