Will Creditors Stop Calling Me after I file for Bankruptcy?
There are a variety of reasons why you may need to file for bankruptcy protection. In some cases, a job loss or large medical bill wipes out your savings. In other cases, failure to set a budget may cause you to live beyond your means. Regardless of why you are filing for bankruptcy, will creditors stop calling after you have filed?
A Bankruptcy Filing Will Halt All Creditor Action
By law, creditors are required to stop contacting you about past debts as soon as you file for bankruptcy protection. All calls or inquiries can be made to your bankruptcy trustee or to your lawyer. Your legal representative will provide your creditors with any and all information that they need as the case proceeds.
Legal Action Cannot Be Pursued At This Time
Furthermore, your creditors cannot take any further legal action against you while your case is before a bankruptcy judge. If you have been sued by your creditors or other actions have been taken against you, filing for bankruptcy will force your lenders to drop their claims until your case has been heard.
State And Federal Law Protects Assets From Seizure
Certain assets cannot be seized or liquidated by creditors before, during or after your bankruptcy case has been heard. If creditors threaten to take your home, repossess your car or garnish your wages, they could be held in contempt of court.
Homeowners can use a bankruptcy petition to delay an attempted foreclosure as homes are protected property in a bankruptcy case. However, keep in mind that your lender can restart foreclosure proceedings once the bankruptcy filing has been approved.
Any contact by your creditors that does not first go through your lawyer or trustee is strictly prohibited for any reason until your case is finalized. Make sure that you report any illegal contact to your attorney to ensure that the contact ceases as soon as possible.
Filing for bankruptcy is something that should be done without a lot of thought. However, it will get your creditors to stop contacting you by phone or mail. Additionally, any legal action being taken against you will stop until the terms of your bankruptcy have been determined in a court of law.
Federal law requires the following statement: We are a debt relief agency. We help people file for protection under the bankruptcy code.