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Will filing for bankruptcy stop harassment from debt collectors?

On Behalf of | Apr 13, 2022 | Bankruptcy |

The headache and stress of dealing with debt collectors is exhausting and frustrating. Fortunately, this harassment must stop if you decide to file bankruptcy.

Bankruptcy provides immediate protection from collection agencies and creditors. Regardless of whether you file Chapter 7, Chapter 13 or Chapter 11, an automatic stay goes into effect that will stop most collection actions against you.

Automatic stay benefits

The federal bankruptcy codes help protect those in debt who are actively engaged in the bankruptcy process. Prior to filing for bankruptcy, creditors have the right to pursue the collection or payment of the debt. However, once the debtor makes the motion to file for bankruptcy, the creditor is subject to the rules of an automatic stay. Any attempts at wage garnishment, collection, repossession, eviction or litigation are in violation of federal law and subject to consequences from the Federal Bankruptcy Court. An attorney can report these agencies to bankruptcy court.

Debt settlement and consolidation concerns

The only way to achieve an automatic stay is by filing for bankruptcy protection. Enrolling in a consolidation or debt settlement program will not be able to provide similar relief from creditor harassment. While these companies or services may work to negotiate your debt and reduce the likelihood of collection activities, there is no promise that the harassment will stop. There is also no recourse against creditors who break their negotiations with a settlement or consolidation company.

To put an immediate stop to creditor calls and harassment, file for bankruptcy. Not only can it provide an end to the hassle and fear of collections, but it can also provide you with a fresh start and relief from debt.