Yes. Filing for bankruptcy in South Carolina can stop creditors from harassing you. When you file for bankruptcy, the automatic stay will go into effect and stop all creditor collection activities. However, it’s crucial to note that while creditors may persistently attempt to verify or collect debts, they are not permitted to harass debtors.
While creditors and debt collection agencies are known for using questionable tactics to pressure you into paying your bills, they must also follow the law. If you’re currently being harassed by creditors or are unsure if their actions are legal, consider discussing your case with a local South Carolina bankruptcy attorney who can assess your situation and provide legal guidance.
How Filing for Bankruptcy in South Carolina Can Stop Creditor Harassment
Once you file for Chapter 7 or Chapter 13 bankruptcy, the automatic stay will protect you immediately. Automatic stay protections prevent creditors from:
- Contacting you
- Starting foreclosure proceedings
- Continuing or initiating legal action against you
- Trying to repossess collateral
- Creating, enforcing, or modifying a lien against your property
Another purpose of the automatic stay is to ensure fair treatment by preventing creditors from taking your assets ahead of other creditors. As soon as an automatic stay is in place, it minimizes the likelihood that creditors obtain the complete amount you owe them. Instead, they will be given a proportionate share of your limited funds.
However, creditors can request the court to revoke the automatic stay if your assets have a high chance of depreciation before the conclusion of your bankruptcy case. In addition, the automatic stay doesn’t cover specific types of debts, such as alimony payments, child support, and money owed because of a criminal case.
What to Do If a Creditor Will Not Stop Contacting You After You Have Filed for Bankruptcy
After filing for bankruptcy, you will be automatically protected from any debt collection activities through the automatic stay. There are particular rules that dictate the activities that creditors can do following the filing of your bankruptcy case. One is that debt collectors and creditors cannot communicate with you to speak about your debt with them when your case has been initiated.
If you’ve only just filed your case and a creditor contacts you, it could be that they haven’t been given a notice from the court indicating that your case has been initiated. In this situation, respond and tell them you’ve already filed for bankruptcy. Inform them of your case number and your filing date. You can also refer them to your South Carolina bankruptcy lawyer.
If a creditor still attempts to communicate with you in any way, even when you’ve provided them your case number or referred them to your attorney, they are violating the law . You can take legal action against the creditor. If you succeed with your legal claim, they will be obligated to reimburse you for your legal expenses and compensate you for any related damages.
Speak to Our Skilled South Carolina Bankruptcy Lawyer Now
Keep in mind that you have legal protections and rights under state and federal laws. If you are being harassed by a creditor, get in touch with our South Carolina bankruptcy lawyer at Reed Law Firm. To schedule your free case review with our South Carolina bankruptcy attorney, dial 803-726-4888 or contact us online.
