Filing Bankruptcy to Stop Creditor Harassment2 min read
There are many different reasons to pursue bankruptcy. Getting a fresh financial start and being able to move ahead into the future in control of your finances is obviously the most important. In the meantime though, one of the clear benefits of filing for bankruptcy is that you can use it as a key tool to stop creditor harassment. Continue reading to learn more about how this works, why it’s so beneficial, and how you can capitalize on it to achieve your financial goals.
That’s not just a potential outcome, it’s actually mandated by Federal law. How exactly is this made possible? Well, the Automatic Stay kicks in as soon as you file for bankruptcy. Your benefits from this include immediately stopping many of the actions being taken against you, including creditor harassment.
This also includes collection agencies trying to repossess your property, and lawsuits being filed against you. Therefore, the best way to stop creditor harassment is actually to file bankruptcy and let that Automatic Stay provide you with the outcome you’ve been seeking.
What qualifies as creditor harassment though? There’s a range of specific rules in play here. But generally, creditor harassment includes adding to your debt or misrepresenting how much is owed, calling repetitively, calling you at work, or calling you outside of reasonable weekday hours, or disclosing the debt to third parties.
While it’s difficult to have these rules enforced, once you file for bankruptcy, creditors generally know they have to back off. If not, further action can be taken by yourself and your legal team. Therefore, once you file for bankruptcy, you can at least get your plate cleared of excessive phone calls, letters and threats, as you pursue your financial resolutions. It certainly provides some peace of mind and reduces the stress and hassle that you’re facing during this difficult time.
Before filing for bankruptcy, be sure to consult with an experienced attorney who will be able to guide you through the process. While stopping creditor harassment is a huge bonus to filing bankruptcy, there are still a range of ups and downs to carefully consider.
There are also different chapters of bankruptcy which provide you with different types of financial remedies, and different levels of property retention as well. It’s not always the right solution, so your personal circumstances and goals certainly come into play, but the Automatic Stay’s capabilities to instantly stop creditor harassment is a major plus.