One of the fundamental functions of bankruptcy is to protect stressed debtors from overzealous debt collectors as well as from undue punishments such as the debtors' prisons of long ago.
Expect Aggressive Debt Collection Efforts by Creditors and Collectors
Typically, when a creditor does not receive repayment as expected, the creditor will seek to collect the debt through phone calls, letters and legal notices. If the debt continues to go unpaid, the creditor may file a lawsuit against you seeking a judgment forcing you to repay a debt, including by methods such as wage garnishment, levies against your bank accounts and seizure of your property.
Bankruptcy Provides Protection From Debt Collection Through the Automatic Stay
Bankruptcy offers protection against such aggressive collection tactics. Once you notify a creditor that you have retained a lawyer to represent you in bankruptcy, the phone calls and letters are supposed to stop. Once you file bankruptcy with the court, a more powerful deterrent to aggressive debt collection goes into effect: the automatic stay.
The automatic stay prohibits debt collection and will stop actions including the following:
- Stop creditor phone calls, letters and harassment
- Stop foreclosure
- Stop wage garnishment
- Stop bank account levies
The automatic stay prohibits creditors from attempting to collect on debts that you owe them from the time you file bankruptcy until your bankruptcy is complete. When the bankruptcy is finished, your debts will be discharged. From then on, the debts no longer exist and creditors or debt collectors are forbidden from trying to collect on it ever again.
The Bankruptcy Court May Take Action to Punish Ongoing Creditor Harassment - Free Initial Consultation at P.R. Smith Law Group, P.A.
For more information on the automatic stay and its impact on secured and unsecured debts or to speak with an attorney about your rights, contact the P.R. Smith Law Group to schedule a free initial consultation. Call 888-682-5251 toll free to make an appointment with a lawyer at our Tampa office or one of our other Florida offices.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
