Will Bankruptcy Stop Creditor Harassment and Collection Actions?
If you are considering bankruptcy, you’re undoubtedly experiencing considerable stress in relation to your finances, and you may have come to the conclusion that bankruptcy is your only hope. Fortunately, it’s not all bad news. The fact is that bankruptcy can stop your creditors from harassing you and from engaging in collection actions, which may afford you the peace of mind you need to get your finances squared away. An experienced Columbia bankruptcy attorney will help you explore your best options in relation to turning your finances around.
There Are Laws in Place to Protect You
Creditors can become very aggressive, and they often do so to squeeze money out of those they hound. While your creditors have the right to be paid, they don’t have the legal right to use whatever means they can dream up to make that happen. Ultimately, creditors must refrain from engaging in strongarm tactics that exceed the limits set by the law, and if you believe your creditors are stepping over the line, a trusted bankruptcy attorney can help.
The Automatic Stay
Whether you file for Chapter 7 bankruptcy or Chapter 13 bankruptcy, an automatic stay will go into immediate effect. This stay should shut down overzealous creditors in all the following ways:
- By preventing them from contacting you
- By preventing them from continuing to pursue any legal actions they’ve already implemented against you or from initiating any new legal actions against you
- By preventing them from repossessing any collateral you are in possession of, such as your car
- By preventing them from initiating, modifying, or enforcing a lien against you
- By preventing them from initiating a foreclosure against you
These primary measures will put a halt to most – if not all – of the debt-collection harassment you’ve been experiencing.
The Goal
The intention behind bankruptcy’s automatic stay is to level the playing field in relation to your creditors. With bankruptcy, each creditor will receive what the bankruptcy court determines is their fair share in relation to what you are able to pay. This is instead of allowing the creditor with the most aggressive practices to take the lion’s share of your assets.
Once Your Creditors Have Been Given Notice
As soon as you file for bankruptcy, all harassment on the part of your creditors should end. If it doesn’t, it may be because specific creditors haven’t yet received notification of your bankruptcy filing. Once they’ve received official notice, however, any collection efforts on their part are against the law, and you will have legal recourse.
Turn to an Experienced Columbia, South Carolina, Bankruptcy Attorney for the Help You Need
The practiced Columbia, South Carolina bankruptcy attorneys at Reed Law Firm appreciate just how difficult fielding never-ending harassment from creditors can be, and we’re committed to helping you put a stop to it and gain control of your finances through bankruptcy, which can be highly effective. For more information, don’t wait to contact us online or call (803) 726-4888 today.
