Stopping creditor harassment through bankruptcy

An automatic stay provides debtors relief from creditor harassment and helps people on the path to financial freedom.

Millions of people across the nation have accumulated massive amounts of credit card debt, medical expenses, mortgage payments and other bills that they cannot pay. These people have several options when it comes to finding a way to rid themselves of debt and get rid of harassing creditors from badgering them on a daily basis.

Creditor harassment

Whether people are late making their payments or have avoided making payments altogether, creditors can be quite harassing when attempting to get a portion of their money back. Creditors may call at all hours of the day, send out emails, make threats and even call debtors at their place of work. In some cases, debtors may use obscene language, file a lawsuit or put a lien on property in order to regain the money that is owed to them. Although The Fair Debt Collection Practices Act clearly prohibits creditors from engaging in these practices, creditors continue to harass debtors on a regular basis. People may feel as though there is nothing they can do to repay their debt and get their life back on track.

Automatic stay

Bankruptcy is one option of debt relief that allows people to gain freedom from their financial burdens. Once a person submits all of the bankruptcy paperwork to the court, the court will issue an automatic stay to the creditors involved in the case. An automatic stay alerts creditors that the debtor has filed for bankruptcy and that they are no longer able to contact the debtor in any fashion regarding the money that is owed.

As part of the initial bankruptcy paperwork, the debtor must submit a document that includes all of the creditors involved in the case. It is crucial that the person filing for bankruptcy includes a comprehensive list of creditors, as these are the companies that will be contacted regarding the impending bankruptcy. If a creditor is not listed, they may not be issued the automatic stay and may continue contacting the debtor.

Once an automatic stay is in place, creditors may not pursue lawsuits, make telephone calls, issue wage garnishments or demand creditor payments. People should keep in mind that some automatic stays are temporary and may only last for a certain period of time.

Get the process started

If you are buried beneath massive amounts of debt and need help to rid yourself of financial burden, you may want to contact a bankruptcy attorney. A lawyer in Connecticut may be helpful in exploring your legal questions, answering your questions and choosing the right path to financial freedom.